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CHAPTER SIX

Continuous Distributions

151
Chapter Six
D 1. Which of the following is NOT a continuous distribution?

E A. normal distribution
Term B. exponential distribution
C. uniform distribution
D. binomial distribution

D 2. The uniform distribution is _______________.

E A. bimodal
Term B. skewed to the right
C. skewed to the left
D. symmetric

152
Chapter 6:  Continuous Distributions 153
A 3. The uniform distribution is also known as the __________.

E A. rectangular distribution
Term B. gamma distribution
C. beta distribution
D. Erlang distribution

D 4. The distribution in the following graph is a ________ distribution.

0.06
0.05
0.04
f(X)

0.03
0.02
0.01
0.00
35 40 45 50 55 60 x 65

E A. normal
Term B. gamma
C. exponential
D. uniform

A 5. The distribution in the following graph is a ________ distribution.


0.5

0.4

0.3

0.2

0.1

0
x

E A. normal
Term B. gamma
C. exponential
D. uniform
154 Test Bank
C 6. The distribution in the following graph is a ________ distribution.
1.2
1.0
0.8
0.6
0.4
0.2
0.0
0 1 2 3 4 5 x 6

E A. normal
Term B. gamma
C. exponential
D. uniform

B 7. If X is uniformly distributed over the interval 8 to 12, inclusively


(8 £ X £ 12), then the height of this distribution, f(x), is
__________________.

E A. 1/8
Term B. 1/4
C. 1/12
D. 1/20

A 8. If X is uniformly distributed over the interval 8 to 12, inclusively


(8 £ X £ 12), then the mean() of this distribution is
__________________.

M A. 10
Calc B. 20
C. 5
D. incalculable

C 9. If X is uniformly distributed over the interval 8 to 12, inclusively


(8 £ X £ 12), then the standard deviation () of this distribution is
__________________.

M A. 4
Calc B. 1.33
C. 1.15
D. 2
Chapter 6:  Continuous Distributions 155
B 10. If X is uniformly distributed over the interval 8 to 12, inclusively
(8 £ X £ 12), then the P(9 £ X £ 11) is __________________.

M A. 0.250
Calc B. 0.500
C. 0.333
D. 1.000

C 11. If X is uniformly distributed over the interval 8 to 12, inclusively


(8 £ X £ 12), then the P(10.0 £ X £ 11.5) is __________________.

M A. 0.250
Calc B. 0.333
C. 0.375
D. 0.000

D 12. If X is uniformly distributed over the interval 8 to 12, inclusively


(8 £ X £ 12), then the P(13 £ X £ 15) is __________________.

M A. 0.250
Calc B. 0.500
C. 0.375
D. 0.000

B 13. If X is uniformly distributed over the interval 8 to 12, inclusively


(8 £ X £ 12), then P(X < 7) is __________________.

M A. 0.500
Calc B. 0.000
C. 0.375
D. 0.250

A 14. If X is uniformly distributed over the interval 8 to 12, inclusively


(8 £ X £ 12), then P(X £ 11) is __________________.

M A. 0.750
Calc B. 0.000
C. 0.333
D. 0.500
156 Test Bank
D 15. If X is uniformly distributed over the interval 8 to 12, inclusively
(8 £ X £ 12), then P(X ³ 10) is __________________.

E A. 0.750
Calc B. 0.000
C. 0.333
D. 0.500

A 16. If X is uniformly distributed over the interval 20 to 30, inclusively


(20 £ X £ 30), then the height of this distribution, f(x), is
__________________.

E A. 1/10
Calc B. 1/20
C. 1/30
D. 1/50

B 17. If X is uniformly distributed over the interval 20 to 30, inclusively


(20 £ X £ 30), then the mean () of this distribution is
__________________.

M A. 50
Calc B. 25
C. 10
D. 5

D 18. If X is uniformly distributed over the interval 20 to 30, inclusively


(20 £ X £ 30), then the standard deviation () of this distribution
is __________________.

M A. incalculable
Calc B. 8.33
C. 0.833
D. 2.89

C 19. If X is uniformly distributed over the interval 20 to 30, inclusively


(20 £ X £ 30), then P(25 £ X £ 28) is __________________.

M A. 0.250
Calc B. 0.500
C. 0.300
D. 1.000
Chapter 6:  Continuous Distributions 157
A 20. If X is uniformly distributed over the interval 20 to 30, inclusively
(20 £ X £ 30), then P(21.75 £ X £ 24.25) is __________________.

M A. 0.250
Calc B. 0.333
C. 0.375
D. 0.000

B 21. If X is uniformly distributed over the interval 20 to 30, inclusively


(20 £ X £ 30), then P(33 £ X £ 35) is __________________.

M A. 0.500
Calc B. 0.000
C. 0.375
D. 0.200

C 22. If X is uniformly distributed over the interval 20 to 30, inclusively


(20 £ X £ 30), then P(X < 17) is __________________.

M A. 0.500
Calc B. 0.300
C. 0.000
D. 0.250

A 23. If X is uniformly distributed over the interval 20 to 30, inclusively


(20 £ X £ 30), then P(X £ 22) is __________________.

M A. 0.200
Calc B. 0.300
C. 0.000
D. 0.250

D 24. If X is uniformly distributed over the interval 20 to 30, inclusively


(20 £ X £ 30), then P(X ³ 24) is __________________.

M A. 0.100
Calc B. 0.000
C. 0.333
D. 0.600
158 Test Bank
C 25. Helen Casner, a labor relations arbitrator, feels that the amount
of time needed to arbitrate a labor dispute is uniformly
distributed over the interval 4 to 24 hours, inclusively (4 £ X £
24). Accordingly, the mean (average) time needed to arbitrate a
labor dispute is ____________.

M A. 20 hours
BCalc B. 16 hours
C. 14 hours
D. 12 hours

D 26. Helen Casner, a labor relations arbitrator, feels that the amount
of time needed to arbitrate a labor dispute is uniformly
distributed over the interval 4 to 24 hours, inclusively (4 £ X £
24). Accordingly, the probability that a labor dispute will be
arbitrated in 8 hours or less is ____________.

M A. 0.3333
BCalc B. 0.6667
C. 0.0000
D. 0.2000

C 27. Helen Casner, a labor relations arbitrator, feels that the amount
of time needed to arbitrate a labor dispute is uniformly
distributed over the interval 4 to 24 hours, inclusively (4 £ X £
24). Accordingly, the probability that a labor dispute will require
between 8 and 16 hours, inclusively, for arbitration is
____________.

M A. 0.3333
BCalc B. 0.6667
C. 0.4000
D. 0.2000

B 28. The normal distribution is an example of _______.

E A. a discrete distribution
Term B. a continuous distribution
C. a bimodal distribution
D. an exponential distribution
Chapter 6:  Continuous Distributions 159
B 29. The total area underneath any normal curve is _______.

E A. equal to the mean


Term B. equal to 1
C. equal to the variance
D. equal to the coefficient of variation

D 30. The area to the left of the mean in any normal distribution is
_______.

E A. equal to the mean


Term B. equal to 1
C. equal to the variance
D. equal to 0.5

B 31. For any normal distribution, any value less than the mean would
have a _______.

E A. positive Z-score
Term B. negative Z-score
C. negative variance
D. negative probability of occurring

D 32. A standardized normal distribution has the following


characteristics:

E A. the mean and variance are both equal to 1


Term B. the mean and variance are both equal to 0
C. the mean is equal to the variance
D. the mean is equal to 0 and the variance is equal to 1

C 33. If X is a normal random variable with mean 80 and standard


deviation 5, calculate the Z score if X=88.

E A. 1.8
Calc B. -1.8
C. 1.6
D. -1.6

D 34. If X is a normal random variable with mean 80 and standard


deviation 5, calculate the Z score if X=72.

E A. 1.8
Calc B. -1.8
C. 1.6
160 Test Bank
D. -1.6
D 35. If X is a normal random variable with mean 80 and standard
deviation 5, calculate the Z score if X=92.

E A. 2.1
Calc B. 12
C. 1.2
D. 2.4

C 36. If X is a normal random variable with mean 60 and standard


deviation 2, calculate the Z score if X=57.

E A. 1.5
Calc B. 2.5
C. -1.5
D. -2.5

C 37. Suppose X is a normal random variable with mean 60 and


standard deviation 2. A Z score was calculated for a number,
and the Z score is 3.4. What is X?

M A. 63.4
Calc B. 56.6
C. 66.8
D. 53.2

D 38. Suppose X is a normal random variable with mean 60 and


standard deviation 2. A Z score was calculated for a number,
and the Z score is -1.3. What is X?

M A. 58.7
Calc B. 61.3
C. 62.6
D. 57.4

B 39. Let Z be a normal random variable with mean 0 and standard


deviation 1. Use the normal tables to find P(Z < 1.3).

E A. 0.4032
Calc B. 0.9032
C. 0.0968
D. 0.3485
Chapter 6:  Continuous Distributions 161
D 40. Let Z be a normal random variable with mean 0 and standard
deviation 1. Use the normal tables to find P(1.3 < Z < 2.3).

E A. 0.4032
Calc B. 0.9032
C. 0.4893
D. 0.0861

C 41. Let Z be a normal random variable with mean 0 and standard


deviation 1. Use the normal tables to find P(Z > 2.4).

M A. 0.4918
Calc B. 0.9918
C. 0.0082
D. 0.4793

D 42. Let Z be a normal random variable with mean 0 and standard


deviation 1. Use the normal tables to find P(Z < -2.1).

M A. 0.4821
Calc B. -0.4821
C. 0.9821
D. 0.0179

B 43. Let Z be a normal random variable with mean 0 and standard


deviation 1. Use the normal tables to find P(Z > -1.1).

M A. 0.3643
Calc B. 0.8643
C. 0.1357
D. -0.1357

C 44. Let Z be a normal random variable with mean 0 and standard


deviation 1. Use the normal tables to find P(-2.25 < Z < -1.1).

M A. 0.3643
Calc B. 0.8643
C. 0.1235
D. 0.4878
162 Test Bank
B 45. Let Z be a normal random variable with mean 0 and standard
deviation 1. Use the normal tables to find P(-2.25 < Z < 1.1).

M A. 0.3643
Calc B. 0.8521
C. 0.1235
D. 0.4878

C 46. Let Z be a normal random variable with mean 0 and standard


deviation 1. The 50th percentile of Z is ____________.

E A. 0.670
Calc B. -1.254
C. 0.000
D. 1.280

A 47. Let Z be a normal random variable with mean 0 and standard


deviation 1. The 75th percentile of Z is ____________.

M A. 0.670
Calc B. -1.254
C. 0.000
D. 1.280

D 48. Let Z be a normal random variable with mean 0 and standard


deviation 1. The 90th percentile of Z is ____________.

M A. 1.645
Calc B. -1.254
C. 1.960
D. 1.280

A 49. Let Z be a normal random variable with mean 0 and standard


deviation 1. The 95th percentile of Z is ____________.

M A. 1.645
Calc B. -1.254
C. 1.960
D. 1.280
Chapter 6:  Continuous Distributions 163
B 50. Let X be a normal random variable with mean 20 and standard
deviation 4. Find P(X < 25).

M A. 0.3944
Calc B. 0.8944
C. 0.1056
D. 0.6056

C 51. Let X be a normal random variable with mean 20 and standard


deviation 4. Find P(X < 17).

M A. 0.2734
Calc B. 0.7734
C. 0.2266
D. -0.2734

B 52. Let X be a normal random variable with mean 20 and standard


deviation 4. Find P(X < 19).

M A. 0.0987
Calc B. 0.4013
C. -0.0987
D. 0.5987

D 53. Let X be a normal random variable with mean 20 and standard


deviation 4. Find P(16 < X < 22).

M A. 0.4672
Calc B. 0.0328
C. 0.1498
D. 0.5328

B 54. Let X be a normal random variable with mean 20 and standard


deviation 4. The 50th percentile of X is ____________.

E A. 4.000
Calc B. 20.000
C. 22.698
D. 26.579
164 Test Bank
C 55. Let X be a normal random variable with mean 20 and standard
deviation 4. The 75th percentile of X is ____________.

M A. 25.126
Calc B. 20.000
C. 22.698
D. 26.579

A 56. Let X be a normal random variable with mean 20 and standard


deviation 4. The 90th percentile of X is ____________.

M A. 25.126
Calc B. 20.000
C. 22.698
D. 26.579

D 57. Let X be a normal random variable with mean 20 and standard


deviation 4. The 95th percentile of X is ____________.

M A. 25.126
Calc B. 20.000
C. 22.698
D. 26.579

D 58. Let X be a normal random variable with mean 40 and standard


deviation 8. Find P(32 < X < 44).

M A. 0.4672
Calc B. 0.0328
C. 0.1498
D. 0.5328

A 59. Let X be a normal random variable with mean 40 and standard


deviation 8. Find P(X < 96).

M A. 1.0000
Calc B. 0.0000
C. 0.0793
D. 0.0575
Chapter 6:  Continuous Distributions 165
B 60. Let X be a normal random variable with mean 40 and standard
deviation 2. Find P(X < 28).

M A. 1.0000
Calc B. 0.0000
C. 0.2580
D. 0.0472

B 61. A Z score is the number of __________ that a value is from the


mean.

E A. variances
Term B. standard deviations
C. units
D. miles

C 62. Within a range of Z scores from -1 to +1, you can expect to find
_______ per cent of the values in a normal distribution.

E A. 95
Term B. 99
C. 68
D. 34

A 63. Within a range of Z scores from -2 to +2, you can expect to find
_______ per cent of the values in a normal distribution.

E A. 95
Term B. 99
C. 68
D. 34

C 64. The expected (mean) life of a particular type of light bulb is


1,000 hours with a standard deviation of 50 hours. The life of
this bulb is normally distributed. What is the probability that a
randomly selected bulb would last longer than 1150 hours?

M A. 0.4987
Calc B. 0.9987
C. 0.0013
D. 0.5013
166 Test Bank
B 65. The expected (mean) life of a particular type of light bulb is
1,000 hours with a standard deviation of 50 hours. The life of
this bulb is normally distributed. What is the probability that a
randomly selected bulb would last fewer than 1100 hours?

M A. 0.4772
Calc B. 0.9772
C. 0.0228
D. 0.5228

C 66. The expected (mean) life of a particular type of light bulb is


1,000 hours with a standard deviation of 50 hours. The life of
this bulb is normally distributed. What is the probability that a
randomly selected bulb would last fewer than 940 hours?

M A. 0.3849
Calc B. 0.8849
C. 0.1151
D. 0.6151

D 67. Suppose you are working with a data set that is normally
distributed with a mean of 400 and a standard deviation of 20.
Determine the value of X such that 60% of the values are
greater than X.

H A. 404.5
Calc B. 395.5
C. 405.0
D. 395.0

A 68. Suppose you are working with a data set that is normally
distributed with a mean of 400 and a standard deviation of 20.
Determine the value of X such that only 1% of the values are
greater than X.

H A. 446.6
Calc B. 353.4
C. 400.039
D. 405
Chapter 6:  Continuous Distributions 167
C 69. Suppose you are working with a data set that is normally
distributed with a mean of 400 and a standard deviation of 20.
Determine the value of X such that 5% of the values are less
than X.

H A. 432.9
Calc B. 396
C. 367.1
D. 404

C 70. The E.P.A. has reported that the average fuel cost for a particular
type of automobile is $800 with a standard deviation of $80.
Fuel cost is assumed to be normally distributed. If one of these
cars is randomly selected, what is the probability that the fuel
cost for this car exceeds $900?

M A. 0.3944
Calc B. 0.8944
C. 0.1056
D. 0.6056

B 71. The E.P.A. has reported that the average fuel cost for a particular
type of automobile is $800 with a standard deviation of $80.
Fuel cost is assumed to be normally distributed. If one of these
cars is randomly selected, what is the probability that the fuel
cost for this car exceeds $760?

M A. 0.1915
Calc B. 0.6915
C. 0.3085
D. 0.8085

B 72. The E.P.A. has reported that the average fuel cost for a particular
type of automobile is $800 with a standard deviation of $80.
Fuel cost is assumed to be normally distributed. We would
expect that only 10% of these cars would have an annual fuel
cost greater than _______.

H A. 820.0
Calc B. 902.4
C. 808.0
D. 812.8
168 Test Bank
A 73. The E.P.A. has reported that the average fuel cost for a particular
type of automobile is $800 with a standard deviation of $80.
Fuel cost is assumed to be normally distributed. If a car is
randomly selected, what is the probability that fuel cost would
be between $700 and $900?

M A. 0.7888
Calc B. 0.8944
C. 0.3944
D. 0.1056

C 74. The net profit of an investment is normally distributed with a


mean of $10,000 and a standard deviation of $5,000. The
probability that the investor will not have a net loss is
_____________.

M A. 0.4772
BCalc B. 0.0228
C. 0.9772
D. 0.9544

B 75. The net profit of an investment is normally distributed with a


mean of $10,000 and a standard deviation of $5,000. The
probability that the investor will have a net loss is _____________.

M A. 0.4772
BCalc B. 0.0228
C. 0.9772
D. 0.9544

A 76. The net profit of an investment is normally distributed with a


mean of $10,000 and a standard deviation of $5,000. The
probability that the investor’s net profit will be between $12,000
and $15,000 is _____________.

M A. 0.1859
BCalc B. 0.3413
C. 0.8413
D. 0.4967
Chapter 6:  Continuous Distributions 169
C 77. The net profit of an investment is normally distributed with a
mean of $10,000 and a standard deviation of $5,000. The
probability that the investor’s net gain will be at least $5,000 is
_____________.

M A. 0.1859
BCalc B. 0.3413
C. 0.8413
D. 0.4967

A 78. Completion time (from start to finish) of a building remodeling


project is normally distributed with a mean of 200 work-days and
a standard deviation of 10 work-days. The probability that the
project will be completed within 185 work-days is ______.

M A. 0.0668
BCalc B. 0.4332
C. 0.5000
D. 0.9332

D 79. Completion time (from start to finish) of a building remodeling


project is normally distributed with a mean of 200 work-days and
a standard deviation of 10 work-days. The probability that the
project will be completed within 215 work-days is _____.

M A. 0.0668
BCalc B. 0.4332
C. 0.5000
D. 0.9332

A 80. Completion time (from start to finish) of a building remodeling


project is normally distributed with a mean of 200 work-days and
a standard deviation of 10 work-days. The probability that the
project will not be completed within 215 work-days is _____.

M A. 0.0668
BCalc B. 0.4332
C. 0.5000
D. 0.9332
170 Test Bank
C 81. Completion time (from start to finish) of a building remodeling
project is normally distributed with a mean of 200 work-days and
a standard deviation of 10 work-days. The probability that the
project will be completed within ____ work-days is 0.99.

M A. 211
BCalc B. 187
C. 223
D. 200

B 82. The length of steel rods produced by a shearing process are


normally distributed with  = 120 inches and  = 0.05 inch.
Industry standards require the rods to be between 119.90 and
120.15 inches, inclusively. The probability that a rod produced
by this process will conform to industry standards is
______________.

M A. 0.9542
BCalc B. 0.9759
C. 0.9974
D. 0.6826

C 83. The length of steel rods produced by a shearing process are


normally distributed with  = 120 inches and  = 0.05 inch.
Industry standards require the rods to be between 119.90 and
120.15 inches, inclusively. Any rod longer than 120.15 inches is
re-sheared. The probability that a rod produced by this process
will require re-shearing is ___________.

M A. 0.0458
BCalc B. 0.0228
C. 0.0013
D. 0.0241

B 84. The length of steel rods produced by a shearing process are


normally distributed with  = 120 inches and  = 0.05 inch.
Industry standards require the rods to be between 119.90 and
120.15 inches, inclusively. Any rod shorter than 119.90 inches is
scrapped (used in the next melt). The probability that a rod
produced by this process will be scrapped is ___________.

M A. 0.0458
BCalc B. 0.0228
C. 0.0013
D. 0.0241
Chapter 6:  Continuous Distributions 171

A 85. The weights of aluminum castings produced by a process are


normally distributed with  = 2 pounds and  = 0.10 pound.
Design specifications require the castings to weigh between
1.836 and 2.164 pounds, inclusively. The probability that a
casting produced by this process will conform to design
specifications is _________.

M A. 0.8990
BCalc B. 0.4495
C. 0.9974
D. 0.9500

C 86. The weights of aluminum castings produced by a process are


normally distributed with  = 2 pounds and  = 0.10 pound.
Design specifications require the castings to weigh between
1.836 and 2.164 pounds, inclusively. Any casting weighing less
than 1.836 pounds is scrapped. The probability that a casting
produced by this process will be scrapped, due to under-weight,
is _________.

M A. 0.1010
BCalc B. 0.4495
C. 0.0505
D. 0.0010

C 87. The weights of aluminum castings produced by a process are


normally distributed with  = 2 pounds and  = 0.10 pound.
Design specifications require the castings to weigh between
1.836 and 2.164 pounds, inclusively. Any casting weighing more
than 2.164 pounds is re-worked. The probability that a casting
produced by this process will be re-worked, due to over-weight,
is _________.

M A. 0.0010
BCalc B. 0.1010
C. 0.0101
D. 0.0505

B 88. Let X be a binomial random variable with n=20 and p=.8. If we


use the normal distribution to approximate probabilities for this,
we would use a mean of _______.

E A. 20
Calc B. 16
172 Test Bank
C. 3.2
D. 8

C 89. Let X be a binomial random variable with n=20 and p=.8. If we


use the normal distribution to approximate probabilities for this,
we would use a standard deviation of _______.

M A. 16
Calc B. 3.2
C. 1.79
D. 0.16

B 90. Let X be a binomial random variable with n=20 and p=.8. If we


use the normal distribution to approximate probabilities for this,
a correction for continuity should be made. To find the
probability of more than 12 successes, we should find _______.

M A. P(X>12)
Term B. P(X>12.5)
C. P(X>11.5)
D. P(X<11.5)

B 91. Let X be a binomial random variable with n=20 and p=.8. If we


use the normal distribution to approximate probabilities for this,
a correction for continuity should be made. To find the
probability of 12 successes or more, we should find _______.

M A. P(X>12)
Term B. P(X>11.5)
C. P(X>12.5)
D. P(X<12.5)

C 92. Let X be a binomial random variable with n=20 and p=.8. If we


use the normal distribution to approximate probabilities for this,
a correction for continuity should be made. To find the
probability of more than 6 but less than 12 successes, we should
find _______.

H A. P(6<X<12)
Calc B. P(6.5<X<12.5)
C. P(6.5<X<11.5)
D. P(5.5<X<12.5)
Chapter 6:  Continuous Distributions 173
C 93. Ten percent of all personal loans granted by First Easy Money
Bank are defaulted in the fourth re-payment month. One-
hundred four-month old personal loans are randomly selected
from a population of 3,000. The number of defaulted loans in
this sample has a binomial distribution. If we use the normal
distribution to approximate probabilities for this, we would use a
mean of _______.

M A. 30
BCalc B. 50
C. 10
D. 300

B 94. According to the U. S. Department of Commerce, 8.6% of the


total civilian employment in Washington state is related to
manufactured exports. A sample of 200 civilian employees in
Washington state is randomly selected. If X is the number of
employees in the sample with jobs related to manufactured
exports, then the mean (expected) value of X is _______________.

M A. 8.60
BCalc B. 17.20
C. 15.72
D. 3.96

D 95. According to the U. S. Department of Commerce, 8.6% of the


total civilian employment in Washington state is related to
manufactured exports. A sample of 200 civilian employees in
Washington state is randomly selected. If X is the number of
employees in the sample with jobs related to manufactured
exports, then the standard deviation of X is _______________.

H A. 8.60
Calc B. 17.20
C. 15.72
D. 3.96

D 96. According to the U. S. Department of Commerce, 8.6% of the


total civilian employment in Washington state is related to
manufactured exports. A sample of 200 civilian employees in
Washington state is randomly selected. The probability that
between 9 and 15 (inclusively) of the employees have jobs
related to manufactured exports is _______________.

H A. 0.9564
174 Test Bank
BCalc B. 0.9435
C. 0.9386
D. 0.9874

B 97. The exponential distribution is an example of _______.

E A. a discrete distribution
Term B. a continuous distribution
C. a bimodal distribution
D. an normal distribution

B 98. If arrivals at a bank follow a Poisson distribution, then the time


between arrivals would be _______.

M A. normally distributed
Term B. exponentially distributed
C. a binomial distribution
D. equal to lambda
B 99. For an exponential distribution with lambda () equal to 4 per
minute, the mean () is __________.

E A. 4
Term B. 0.25
C. 0.5
D. 1

C 100. For an exponential distribution with lambda () equal to 4 per


minute, the standard deviation () is _______.

M A. 4
Term B. 0.5
C. 0.25
D. 1

A 101. The average time between phone calls is 30 seconds. Assuming


that the time between calls is exponentially distributed, find the
probability that more than a minute elapses between calls.

M A. 0.135
Calc B. 0.368
C. 0.865
D. 0.607
Chapter 6:  Continuous Distributions 175
D 102. The average time between phone calls is 30 seconds. Assuming
that the time between calls is exponentially distributed, find the
probability that less than two minutes elapse between calls.

M A. 0.018
Calc B. 0.064
C. 0.936
D. 0.982

B 103. Suppose that the mean time between arrivals is ten minutes and
that random arrivals are Poisson distributed. Find the probability
that less than 8 minutes pass between two arrivals.

M A. 0.449
Calc B. 0.551
C. 0.286
D. 0.714

A 104. Suppose that the mean time between arrivals is ten minutes and
that random arrivals are Poisson distributed. Find the probability
that more than 5 minutes pass between two arrivals.

M A. 0.607
Calc B. 0.393
C. 0.135
D. 0.865

D 105. On Saturdays, cars arrive at Sami Schmitt's Scrub and Shine Car
Wash at the rate of 6 cars per fifteen minute interval. The
average interarrival time between cars is _____________.

E A. 2.167 minutes
BCalc B. 10.000 minutes
C. 0.167 minutes
D. 2.500 minutes
176 Test Bank
B 106. On Saturdays, cars arrive at Sami Schmitt's Scrub and Shine Car
Wash at the rate of 6 cars per fifteen minute interval. The
probability that at least 2 minutes will elapse between car
arrivals is _____________.

M A. 0.0000
BCalc B. 0.4493
C. 0.1353
D. 2.2255

C 107. On Saturdays, cars arrive at Sami Schmitt's Scrub and Shine Car
Wash at the rate of 6 cars per fifteen minute interval. The
probability that at least 5 minutes will elapse between car
arrivals is _____________.

M A. 0.0000
BCalc B. 0.4493
C. 0.1353
D. 0.0067

B 108. On Saturdays, cars arrive at Sami Schmitt's Scrub and Shine Car
Wash at the rate of 6 cars per fifteen minute interval. The
probability that less than 10 minutes will elapse between car
arrivals is _____________.

M A. 0.8465
BCalc B. 0.9817
C. 0.0183
D. 0.1535

D 109. The exponential distribution is _______.

E A. symmetric
Term B. bimodal
C. skewed to the left
D. skewed to the right

B 110. The standard normal distribution is also called _______.

E A. an exponential distribution
Term B. the Z distribution
C. a discrete distribution
D. a finite distribution
Chapter 6:  Continuous Distributions 177
A 111. The normal distribution is also referred to as _______.

E A. the Gaussian distribution


Term B. the de Moivre distribution
C. the exponential distribution
D. the Poisson distribution

112. Richard Bowman, Purchasing Manager at Mid-West Medical


Center, is reviewing the annual vendor performance report.
Richard is searching for opportunities to reduce Mid-West's
inventory costs, and pauses to study a table summarizing the
delivery times (elapsed time from placing an order until the
material is received) for two suppliers of surgical dressings and
related materials.

MedcoGauze-R-US
S
u
p
pl
ie
s
17 9
5 2

Discuss the relevance of this information to Richard's objective


of reducing inventory costs. Which vendor should Mid-West
favor? Why? What other factors should Richard consider?
M _________________________________________________________________
BApp _________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
178 Test Bank
113. Candace Maldonado, VP of Customer Services at Alamo Auto
Insurance, Inc., is reviewing the performance of the claims
processing division of her company. Her staff reports that the
time required to process claims is normally distributed with  =
14 days and  = 3 days. Even though Candace has received
several complaint letters from customers alleging lengthy delays
in claims processing, she knows that Alamo out-performs the
industry. (For the industry, processing time is normal with  =
25 days and  = 5 days.) Moreover, she knows that improving
(decreasing) claims processing time will reduce investment
interest earned by the company -- putting a downward pressure
on corporate profits and an upward pressure on premiums.

Discuss Candace's dilemma. How should she respond to the


complaining customers? Should she share her statistics with
other corporate managers?
M _________________________________________________________________
BApp _________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Chapter 6:  Continuous Distributions 179
114. Mone Carlo Simulation analysis of a proposed capital
expenditure indicates that the net present value of the project is
normallly distributed with  of $6,000 and a  of $4,000.

0.45
0.40
0.35
0.30
0.25
f(x)

0.20
0.15
0.10
0.05
0.00
($10,000) ($5,000) $0 $5,000 $10,000 $15,000 $20,000
Net Present Value (x)

Discuss the risk and profitability aspects of the proposed capital


expenditure.
M
BApp
180 Test Bank
115. Monette Construction, Inc. is preparing to bid on a major
roadway construction project. PERT analysis indicates that
project time is normallly distributed with a  of 600 day and a 
of 20 days. The Request for Bids states that the project must be
complete within 635 days. The winner of the bid will be assess a
penalty of $1,000 per day for each day the project extends
beyond 635 days.
0.45
0.40
0.35
0.30
0.25
f(x)

0.20
0.15
0.10
0.05
0.00
500 525 550 575 600 625 650 675 700
Project Time (days)

Discuss the risks to Monette Construction assuming it wins the


bid.
M
BApp

Discuss the risk and profitability aspects of the proposed capital


expenditure.
Chapter 6:  Continuous Distributions 181

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