Question 1
2 out of 2 points
If two events are not mutually exclusive, then P(A or B) = P(A) + P(B) Answer Selected Answer:
False
Correct Answer: False
Question 2
2 out of 2 points
Seventy two percent of all observations fall within 1 standard deviation of the mean if the data is normally distributed. Answer Selected Answer:
False
Correct Answer: False
Question 3
2 out of 2 points
Probability trees are used only to compute conditional probabilities. Answer Selected Answer:
False
Correct Answer: False
Question 4
The maximin approach involves choosing the alternative with the highest or lowest payoff. Answer
2 out of 2 points
Selected Answer:
False
Correct Answer: False
Question 5
2 out of 2 points
The minimin criterion is optimistic. Answer Selected Answer:
True
Correct Answer: Tru e
Question 6
2 out of 2 points
Using the minimax regret criterion, we first construct a table of regrets. Subsequently, for each possible decision, we look across the states of nature and make a note of the maximum regret possible for that decision. We then pick the decision with the largest maximum regret. Answer Selected Answer:
False
Correct Answer: False
Question 7
2 out of 2 points
The Hurwicz criterion is a compromise between the minimax and minimin criteria. Answer Selected Answer:
False
Correct Answer: False
Question 8
2 out of 2 points
Assume that it takes a college student an average of 5 minutes to find a parking spot in the main parking lot. Assume also that this time is normally distributed with a standard deviation of 2 minutes. Find the probability that a randomly selected college student will take between 2 and 6 minutes to find a parking spot in the main parking lot. Answer Selected Answer:
0.6247 Correct Answer:
0.6247
Question 9
2 out of 2 points
A professor would like to utilize the normal distribution to assign grades such that 5% of students receive A's. If the exam average is 62 with a standard deviation of 13, what grade should be the cutoff for an A? (Round your answer.) Answer Selected Answer:
83 Correct Answer:
83
Question 10
2 out of 2 points
The metropolitan airport commission is considering the establishment of limitations on noise pollution around a local airport. At the present time, the noise level per jet takeoff in one neighborhood near the airport is approximately normally distributed with a mean of 100 decibels and a standard deviation of 3 decibels. What is the probability that a randomly selected jet will generate a noise level of more than 105 decibels? Answer Selected Answer:
0.0475
Correct Answer:
0.0475
Question 11
2 out of 2 points
A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow.
If the probability of brisk business is .40 and for slow business is .60, the expected value of perfect information is: Answer Selected Answer:
12 Correct Answer:
12
Question 12
2 out of 2 points
A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow.
The maximax strategy is: Answer
Selected Answer:
Buy Correct Answer:
Buy
Question 13
0 out of 2 points
A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow.
The maximin strategy is: Answer Selected Answer:
Buy Correct Answer:
Lease
Question 14
2 out of 2 points
A group of friends are planning a recreational outing and have constructed the following payoff table to help them decide which activity to engage in. Assume that the payoffs represent their level of enjoyment for each activity under the various weather conditions. Weather Cold Warm Rainy S1 S2 S3 Bike: A1 10 8 6 Hike: A2 14 15 2 Fish: A3 7 8 9 If the group chooses to minimize their maximum regret, what activity will they choose? Answer Selected Answer:
Any of the above Correct Answer:
Any of the above
Question 15
2 out of 2 points