QMB 2100 Basic Business Statistics Spring 2014

Practice Test #2 B
1. The complement of P(A | B) is
a. P(AC | B)
b. P(A | BC)
c. P(B | A)
d. P(A B)
2. The probability of an intersection of two events is computed using the
a. addition law
b. subtraction law
c. multiplication law
d. division law
3. If A and B are mutually exclusive, then
a. P(A) + P(B) = 0
b. P(A) + P(B) = 1
c. P(A B) = 0
d. P(A B) = 1
4.
a.
b.
c.
d.

The range of probability is

any value larger than zero
any value between minus infinity to plus infinity
zero to one
any value between -1 to 1

5.
a.
b.
c.
d.

In statistical experiments, each time the experiment is repeated

the same outcome must occur
the same outcome cannot occur again
a different outcome may occur
None of the other answers is correct.

6.
a.
b.
c.
d.

The set of all possible sample points (experimental outcomes) is called

a sample
an event
the sample space
a population

7.
a.
b.
c.
d.

The sample space refers to

any particular experimental outcome
the sample size minus one
the set of all possible experimental outcomes
both any particular experimental outcome and the set of all possible experimental outcomes
are correct
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8. An experiment consists of tossing 4 coins successively. The number of sample points in this
experiment is
a. 16
b. 8
c. 4
d. 2
9. A lottery is conducted using three urns. Each urn contains chips numbered from 0 to 9. One chip is
selected at random from each urn. The total number of sample points in the sample space is
a. 30
b. 100
c. 729
d. 1,000
10. Three applications for admission to a local university are checked to determine whether each
applicant is male or female. The number of sample points in this experiment is
a. 2
b. 4
c. 6
d. 8
11. Assume your favorite football team has 2 games left to finish the season. The outcome of each
game can be win, lose or tie. The number of possible outcomes is
a. 2
b. 4
c. 6
d. None of the other answers is correct.
12. Each customer entering a department store will either buy or not buy some merchandise. An
experiment consists of following 3 customers and determining whether or not they purchase any
merchandise. The number of sample points in this experiment is
a. 2
b. 4
c. 6
d. 8
13.
a.
b.
c.
d.

A graphical device used for enumerating sample points in a multiple-step experiment is a

bar chart
pie chart
histogram
None of the other answers is correct.

14. Of five letters (A, B, C, D, and E), two letters are to be selected at random. How many possible
selections are there?
a. 20
b. 7
c. 5
d. 10
15. The "Top Three" at a racetrack consists of picking the correct order of the first three horses in a
race. If there are 10 horses in a particular race, how many "Top Three" outcomes are there?
a. 302,400
b. 720
c. 1,814,400
d. 10
16. When the assumption of equally likely outcomes is used to assign probability values, the method
used to assign probabilities is referred to as the
a. relative frequency method
b. subjective method
c. probability method
d. classical method
17. A method of assigning probabilities that assumes the experimental outcomes are equally likely is
referred to as the
a. objective method
b. classical method
c. subjective method
d. experimental method
18. When the results of experimentation or historical data are used to assign probability values, the
method used to assign probabilities is referred to as the
a. relative frequency method
b. subjective method
c. classical method
d. posterior method

19.
a.
b.
c.
d.

The probability assigned to each experimental outcome must be

any value larger than zero
smaller than zero
one
between zero and one

20. An experiment consists of four outcomes with P(E1) 0.2, P(E2) 0.3, and P(E3) 0.4. The
probability of outcome E4 is
a. 0.500
b. 0.024
c. 0.100
d. 0.900
21.
a.
b.
c.
d.

A graphical method of representing the sample points of a multiple-step experiment is

a frequency polygon
a histogram
an ogive
a tree diagram

22. A(n) __________ is a graphical representation in which the sample space is represented by a
rectangle and events are represented as circles.
a. frequency polygon
b. histogram
c. Venn diagram
d. tree diagram
23.
a.
b.
c.
d.

Given that event E has a probability of 0.25, the probability of the complement of event E
cannot be determined with the above information
can have any value between zero and one
must be 0.75
is 0.25

24.
a.
b.
c.
d.

The symbol shows the

union of events
intersection of events
sum of the probabilities of events
sample space

25.
a.
b.
c.
d.

The union of events A and B is the event containing

all the sample points common to both A and B
all the sample points belonging to A or B
all the sample points belonging to A or B or both
all the sample points belonging to A or B, but not both

26.
a.
b.
c.
d.

The probability of the union of two events with nonzero probabilities

cannot be less than one
cannot be one
cannot be less than one and cannot be one
None of the other answers is correct.

27.
a.
b.
c.
d.

The symbol shows the

union of events
intersection of events
sum of the probabilities of events
None of the other answers is correct.

28.
a.
b.
c.
d.

The addition law is potentially helpful when we are interested in computing the probability of
independent events
the intersection of two events
the union of two events
conditional events

a.
b.
c.
d.

If P(A) 0.38, P(B) 0.83, and P(A B) 0.57; then P(A B)

1.21
0.64
0.78
1.78

a.
b.
c.
d.

If P(A) 0.62, P(B) 0.47, and P(A B) 0.88; then P(A B)

0.2914
1.9700
0.6700
0.2100

a.
b.
c.
d.

If P(A) 0.85, P(A B) 0.72, and P(A B) 0.66, then P(B)

0.15
0.53
0.28
0.15

32.
a.
b.
c.
d.

Two events are mutually exclusive if

the probability of their intersection is 1
they have no sample points in common
the probability of their intersection is 0.5
the probability of their intersection is 1 and they have no sample points in common

33.
a.
b.
c.
d.

Events that have no sample points in common are

independent events
posterior events
mutually exclusive events
complements

34.
a.
b.
c.
d.

The probability of the intersection of two mutually exclusive events

can be any value between 0 to 1
must always be equal to 1
must always be equal to 0
can be any positive value

35.
a.
b.
c.
d.

If two events are mutually exclusive, then the probability of their intersection
will be equal to zero
can have any value larger than zero
must be larger than zero, but less than one
will be one

36. Two events, A and B, are mutually exclusive and each has a nonzero probability. If event A is
known to occur, the probability of the occurrence of event B is
a. one
b. any positive value
c. zero
d. any value between 0 to 1

a.
b.
c.
d.

If A and B are mutually exclusive events with P(A) 0.3 and P(B) 0.5, then P(A B)
0.30
0.15
0.00
0.20

a.
b.
c.
d.

If A and B are mutually exclusive events with P(A) 0.3 and P(B) 0.5, then P(A B)
0.00
0.15
0.8
0.2

39.
a.
b.
c.
d.

In an experiment, events A and B are mutually exclusive. If P(A) 0.6, then the probability of B
cannot be larger than 0.4
can be any value greater than 0.6
can be any value between 0 to 1
cannot be determined with the information given

40.
a.
b.
c.
d.

Which of the following statements is(are) always true?

-1 P(Ei) 1
P(A) 1 P(Ac)
P(A) P(B) 1
both P(A) 1 P(Ac) and P(A) P(B) 1

41.
a.
b.
c.
d.

One of the basic requirements of probability is

for each experimental outcome Ei, we must have P(Ei) 1
P(A) P(Ac) 1
if there are k experimental outcomes, then P(E1) P(E2) ... P(Ek) 1
both P(A) P(Ac) 1 and if there are k experimental outcomes, then P(E1) P(E2) ...
P(Ek) 1

42. Events A and B are mutually exclusive with P(A) 0.3 and P(B) 0.2. The probability of the
complement of Event B equals
a. 0.00
b. 0.06
c. 0.7
d. None of the other answers is correct.
43. The multiplication law is potentially helpful when we are interested in computing the probability
of
a. mutually exclusive events
b. the intersection of two events
c. the union of two events
d. None of the other answers is correct.

a.
b.
c.
d.

If P(A) 0.80, P(B) 0.65, and P(A B) 0.78, then P(BA)

0.6700
0.8375
0.9750
Not enough information is given to answer this question.

45.
a.
b.
c.
d.

If two events are independent, then

they must be mutually exclusive
the sum of their probabilities must be equal to one
the probability of their intersection must be zero
None of the other answers is correct.

a.
b.
c.
d.

If A and B are independent events with P(A) 0.38 and P(B) 0.55, then P(AB)
0.209
0.000
0.550
None of the other answers is correct.

a.
b.
c.
d.

If X and Y are mutually exclusive events with P(X) 0.295, P(Y) 0.32, then P(XY)
0.0944
0.6150
1.0000
0.0000

48.
a.
b.
c.
d.

Two events with nonzero probabilities

can be both mutually exclusive and independent
cannot be both mutually exclusive and independent
are always mutually exclusive
cannot be both mutually exclusive and independent and are always mutually exclusive

49.
a.
b.
c.
d.

If P(A) 0.50, P(B) 0.60, and P(A B) 0.30; then events A and B are
mutually exclusive events
not independent events
independent events
Not enough information is given to answer this question.

50. On a December day, the probability of snow is 0.30. The probability of a "cold" day is .50. The
probability of snow and a "cold" day is 0.15. Are snow and "cold" weather independent events?
a. only if given that it snowed
b. no
c. yes
d. only when they are also mutually exclusive
51.
a.
b.
c.
d.

If P(A) 0.5 and P(B) 0.5, then P(A B) is

0.00
0.25
1.00
cannot be determined from the information given

a.
b.
c.
d.

If A and B are independent events with P(A) 0.4 and P(B) 0.6, then P(A B)
0.76
1.00
0.24
0.2

a.
b.
c.
d.

If A and B are independent events with P(A) 0.2 and P(B) 0.6, then P(A B)
0.62
0.12
0.60
0.68

a.
b.
c.
d.

If A and B are independent events with P(A) 0.4 and P(B) 0.25, then P(A B)
0.65
0.55
0.10
Not enough information is given to answer this question.

55.
a.
b.
c.
d.

Events A and B are mutually exclusive. Which of the following statements is also true?
A and B are also independent.
P(A B) P(A)P(B)
P(A B) P(A) P(B)
P(A B) P(A) P(B)

a.
b.
c.
d.

If A and B are independent events with P(A) 0.05 and P(B) 0.65, then P(AB)
0.05
0.0325
0.65
0.8

57.
a.
b.
c.
d.

A six-sided die is tossed 3 times. The probability of observing three ones in a row is
1/3
1/6
1/27
1/216

58.
a.
b.
c.
d.

If P(A|B) = 0.3,
P(B|A) = 0.7
P(AC|B) = 0.7
P(A|BC) = 0.7
P(AC|BC) = 0.7

59.
a.
b.
c.
d.

If A and B are independent events with P(A) = 0.1 and P(B) = 0.4, then
P(A B) = 0
P(A B) = .04
P(A B) = 0.5
P(A B) = 0.25

60.
a.
b.
c.
d.

If P(A|B) = 0.3 and P(B) = 0.8, then

P(A) = .24
P(B|A) = 0.7
P(A B) = 0.5
P(A B) = 0.24

61.
a.
b.
c.
d.

If P(A) = 0.6, P(B) = 0.3, and P(A B) = 0.2, then P(B|A) =

0.33
0.5
0.67
0.9

ANSWER KEY
1. A
2. C
3. C
4. C
5. C
6. C
7. C
8. A
9. D
10. D
11. D
12. D
13. D
14. D
15. B
16. D
17. B
18. A
19. D
20. C
21. D
22. C
23. C
24. A
25. C
26. D
27. B
28. C
29. B
30. D
31. B
32. B
33. C
34. C
35. A
36. C
37. C
38. C
39. A
40. B
41. C
42. D
43. B
44. B
45. D
46. D
47. D
48. B
49. C
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50. C
51. D
52. C
53. D
54. B
55. C
56. A
57. D
58. B
59. B
60. D
61. A

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