# A large industrial firm allows a discount on any invoice that is paid within 30 days

47.          Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll system, and orders an inspection of a random sample of vouchers issued since January 1, 2006.  A sample of ten vouchers is randomly selected, without replacement, from the population of 2,000 vouchers. Each voucher in the sample is examined for errors and the number of vouchers in the sample with errors is denoted by x. If 20% of the population of vouchers contain errors, P(x = 0) is _______________.

a) 0.8171

b) 0.1074

c) 0.8926

d) 0.3020

e) 0.2000

Ans:

Response: See section 5.3 Binomial Distribution

Difficulty: Medium

Learning Objective: 5.3: Solve problems involving the binomial distribution using the binomial formula and the binomial table.

48.          Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll system, and orders an inspection of a random sample of vouchers issued since January 1, 2006.  A sample of ten vouchers is randomly selected, without replacement, from the population of 2,000 vouchers. Each voucher in the sample is examined for errors and the number of vouchers in the sample with errors is denoted by x. If 20% of the population of vouchers contain errors, P(x>0) is _______________.

a) 0.8171

b) 0.1074

c) 0.8926

d) 0.3020

e) 1.0000

Ans:

Response: See section 5.3 Binomial Distribution

Difficulty: Medium

Learning Objective: 5.3: Solve problems involving the binomial distribution using the binomial formula and the binomial table.

49.          Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll system, and orders an inspection of a random sample of vouchers issued since January 1, 2006.  A sample of ten vouchers is randomly selected, without replacement, from the population of 2,000 vouchers. Each voucher in the sample is examined for errors and the number of vouchers in the sample with errors is denoted by x. If 20% of the population of vouchers contains errors, the mean value of x is __________.

a) 400

b) 2

c) 200

d) 5

e) 1

Ans:

Response: See section 5.3 Binomial Distribution

Difficulty: Medium

Learning Objective: 5.3: Solve problems involving the binomial distribution using the binomial formula and the binomial table.

50.          Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll system, and orders an inspection of a random sample of vouchers issued since January 1, 2006. A sample of ten vouchers is randomly selected, without replacement, from the population of 2,000 vouchers. Each voucher in the sample is examined for errors and the number of vouchers in the sample with errors is denoted by x. If 20% of the population of vouchers contains errors, the standard deviation of x is ______.

a) 1.26

b) 1.60

c) 14.14

d) 3.16

e) 0.00

Ans:

Response: See section 5.3 Binomial Distribution

Difficulty: Medium

Learning Objective: 5.3: Solve problems involving the binomial distribution using the binomial formula and the binomial table.

51.          Dorothy Little purchased a mailing list of 2,000 names and addresses for her mail order business, but after scanning the list she doubts the authenticity of the list.  She randomly selects five names from the list for validation.  If 40% of the names on the list are non-authentic, and x is the number of non-authentic names in her sample, P(x=0) is ______________.

a) 0.8154

b) 0.0467

c) 0.0778

d) 0.4000

e) 0.5000

Ans:

Response: See section 5.3 Binomial Distribution

Difficulty: Medium

Learning Objective: 5.3: Solve problems involving the binomial distribution using the binomial formula and the binomial table.

52.          Dorothy Little purchased a mailing list of 2,000 names and addresses for her mail order business, but after scanning the list she doubts the authenticity of the list.  She randomly selects five names from the list for validation.  If 40% of the names on the list are non-authentic, and x is the number of non-authentic names in her sample, P(x<2) is ______________.

a) 0.3370

b) 0.9853

c) 0.9785

d) 0.2333

e) 0.5000

Ans:

Response: See section 5.3 Binomial Distribution

Difficulty: Medium

Learning Objective: 5.3: Solve problems involving the binomial distribution using the binomial formula and the binomial table.

53.          Dorothy Little purchased a mailing list of 2,000 names and addresses for her mail order business, but after scanning the list she doubts the authenticity of the list.  She randomly selects five names from the list for validation.  If 40% of the names on the list are non-authentic, and x is the number of non-authentic names in her sample, P(x>0) is ______________.

a) 0.2172

b) 0.9533

c) 0.1846

d) 0.9222

e) 1.0000

Ans:

Response: See section 5.3 Binomial Distribution

Difficulty: Medium

Learning Objective: 5.3: Solve problems involving the binomial distribution using the binomial formula and the binomial table.

54.          Dorothy Little purchased a mailing list of 2,000 names and addresses for her mail order business, but after scanning the list she doubts the authenticity of the list.  She randomly selects five names from the list for validation.  If 40% of the names on the list are non-authentic, and x is the number on non-authentic names in her sample, the expected (average) value of x is ______________.

a) 2.50

b) 2.00

c) 1.50

d) 1.25

e) 1.35

Ans:

Response: See section 5.3 Binomial Distribution

Difficulty: Medium

Learning Objective: 5.3: Solve problems involving the binomial distribution using the binomial formula and the binomial table.

55. A large industrial firm allows a discount on any invoice that is paid within 30 days.  Of all invoices, 10% receive the discount.  In a company audit, 10 invoices are sampled at random.  The probability that fewer than 3 of the 10 sampled invoices receive the discount is approximately_______________.

a) 0.1937

b) 0.057

c) 0.001

d) 0.3486

e) 0.9298

Ans:

Response: See section 5.3 Binomial Distribution

Difficulty: Hard

Learning Objective: 5.3: Solve problems involving the binomial distribution using the binomial formula and the binomial table.

56. A large industrial firm allows a discount on any invoice that is paid within 30 days.  Of all invoices, 10% receive the discount.  In a company audit, 15 invoices are sampled at random.  The mean (average) value of the number of the 15 sampled invoices that receive discount is _______

a) 1

b) 3

c) 1.5

d) 2

e) 10

Ans:

Response: See section 5.3 Binomial Distribution

Difficulty: Medium

Learning Objective: 5.3: Solve problems involving the binomial distribution using the binomial formula and the binomial table.

57. In a certain communications system, there is an average of 1 transmission error per 10 seconds. Assume that the distribution of transmission errors is Poisson. The probability of 1 error in a period of one-half minute is approximately ________

a) 0.1493

b) 0.3333

c) 0.3678

d) 0.1336

e) 0.03

Ans:

Response: See section 5.4 Poisson Distribution

Difficulty: Hard

Learning Objective: 5.4: Solve problems involving the Poisson distribution using the Poisson formula and the Poisson table.

58. It is known that screws produced by a certain company will be defective with probability .01 independently of each other. The company sells the screws in packages of 25 and offers a money-back guarantee that at most 1 of the 25 screws is defective. Using Poisson approximation for binomial distribution, the probability that the company must replace a package is approximately _________

a) 0.01

b) 0.1947

c) 0.7788

d) 0.0264

e) 0.2211

Ans:

Response: See section 5.4 Poisson Distribution

Difficulty: Hard

Learning Objective: 5.4: Solve problems involving the Poisson distribution using the Poisson formula and the Poisson table.

59.          The number of cars arriving at a toll booth in five-minute intervals is Poisson distributed with a mean of 3 cars arriving in five-minute time intervals. The probability of    5 cars arriving over a five-minute interval is _______.

a) 0.0940

b) 0.0417

c) 0.1500

d) 0.1008

e) 0.2890

Ans:

Response: See section 5.4 Poisson Distribution

Difficulty: Medium

Learning Objective: 5.4: Solve problems involving the Poisson distribution using the Poisson formula and the Poisson table.

60.          The number of cars arriving at a toll booth in five-minute intervals is Poisson distributed with a mean of 3 cars arriving in five-minute time intervals. The probability of 3 cars arriving over a five-minute interval is _______.

a) 0.2700

b) 0.0498

c) 0.2240

d) 0.0001

e) 0.0020

Ans:

Response: See section 5.4 Poisson Distribution

Difficulty: Medium

Learning Objective: 5.4: Solve problems involving the Poisson distribution using the Poisson formula and the Poisson table.

61.          Assume that a random variable has a Poisson distribution with a mean of 5 occurrences per ten minutes. The number of occurrences per hour follows a Poisson distribution with λ equal to _________

a) 5

b) 60

c) 30

d) 10

e) 20

Ans:

Response: See section 5.4 Poisson Distribution

Difficulty: Hard

Learning Objective: 5.4: Solve problems involving the Poisson distribution using the Poisson formula and the Poisson table.

62.          On Monday mornings, customers arrive at the coffee shop drive thru at the rate of  6 cars per fifteen-minute interval. Using the Poisson distribution, the probability that five cars will arrive during the next fifteen-minute interval is _____________.

a) 0.1008

b) 0.0361

c) 0.1339

d) 0.1606

e) 0.5000

Ans:

Response: See section 5.4 Poisson Distribution

Difficulty: Medium

Learning Objective: 5.4: Solve problems involving the Poisson distribution using the Poisson formula and the Poisson table.

63.          On Monday mornings, customers arrive at the coffee shop drive thru at the rate of  6 cars per fifteen minute interval.  Using the Poisson distribution, the probability that five cars will arrive during the next five minute interval is _____________.

a) 0.1008

b) 0.0361

c) 0.1339

d) 0.1606

e) 0.3610

Ans:

Response: See section 5.4 Poisson Distribution

Difficulty: Hard

Learning Objective: 5.4: Solve problems involving the Poisson distribution using the Poisson formula and the Poisson table.

64.          The Poisson distribution is being used to approximate a binomial distribution.  If n=30 and p=0.03, what value of lambda would be used?

a) 0.09

b) 9.0

c) 0.90

d) 90

e) 30

Ans: Response: See section 5.4 Poisson Distribution

Difficulty: Easy

Learning Objective: 5.4: Solve problems involving the Poisson distribution using the Poisson formula and the Poisson table.

65.          The Poisson distribution is being used to approximate a binomial distribution.  If n=60 and p=0.02, what value of lambda would be used?

a) 0.02

b) 12

c)  0.12

d) 1.2

e) 120

Ans:

Response: See section 5.4 Poisson Distribution

Difficulty: Easy

Learning Objective: 5.4: Solve problems involving the Poisson distribution using the Poisson formula and the Poisson table.

66.          The number of bags arriving on the  baggage claim conveyor belt  in a 3 minute time period would best be modeled with the _________.

a) binomial distribution

b) hypergeometric distribution

c) Poisson distribution

d) hyperbinomial distribution

e) exponential distribution

Ans:

Response: See section 5.4 Poisson Distribution

Difficulty: Medium

Learning Objective: 5.4: Solve problems involving the Poisson distribution using the Poisson formula and the Poisson table.

67.          The number of defects per 1,000 feet of extruded plastic pipe is best modeled with the ________________.

a) Poisson distribution

b) Pascal distribution

c) binomial distribution

d) hypergeometric distribution

e) exponential distribution

Ans:

Response: See section 5.4 Poisson Distribution

Difficulty: Medium

Learning Objective: 5.4: Solve problems involving the Poisson distribution using the Poisson formula and the Poisson table.

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