CHAPTER SIX Continuous Distributions

D E Term 1. Which of the following is NOT a continuous distribution? A. B. C. D. 2. normal distribution exponential distribution uniform distribution binomial distribution

D E Term

The uniform distribution is _______________. A. B. C. D. bimodal skewed to the right skewed to the left symmetric

173

174 Test Bank A 3. The uniform distribution is also known as the __________. E Term A. B. C. D. 4. rectangular distribution gamma distribution beta distribution Erlang distribution

The distribution in the following graph is a ________ distribution.

0.06 0.05 0.04 0.03 0.02 0.01 0.00 35 40 45 50 55 60 x 65

E Term

A. B. C. D. 5.

normal gamma exponential uniform

The distribution in the following graph is a ________ distribution.

0.5 0.4 0.3 0.2 0.1 0

f(X)

E Term

A. B. C. D.

normal gamma exponential uniform

6.

Chapter 6: Continuous Distributions 175 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 Term

A. B. C. D. 7.

normal gamma exponential uniform

If x is uniformly distributed over the interval 8 to 12, inclusively (8 x 12), then the height of this distribution, f(x), is __________________. A. B. C. D. 1/8 1/4 1/12 1/20

E Term

8.

If x is uniformly distributed over the interval 8 to 12, inclusively (8 x 12), then the mean() of this distribution is __________________. A. B. C. D. 10 20 5 incalculable

M Calc

9.

If x is uniformly distributed over the interval 8 to 12, inclusively (8 x 12), then the standard deviation () of this distribution is __________________. A. B. C. D. 4 1.33 1.15 2

M Calc

176 Test Bank 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 Calc A. B. C. D. 11. 0.250 0.500 0.333 1.000

If x is uniformly distributed over the interval 8 to 12, inclusively (8 x 12), then the P(10.0 x 11.5) is __________________. A. B. C. D. 0.250 0.333 0.375 0.000

M Calc

12.

If x is uniformly distributed over the interval 8 to 12, inclusively (8 x 12), then the P(13 x 15) is __________________. A. B. C. D. 0.250 0.500 0.375 0.000

M Calc

13.

If x is uniformly distributed over the interval 8 to 12, inclusively (8 x 12), then P(x < 7) is __________________. A. B. C. D. 0.500 0.000 0.375 0.250

M Calc

14.

If x is uniformly distributed over the interval 8 to 12, inclusively (8 x 12), then P(x 11) is __________________. A. B. C. D. 0.750 0.000 0.333 0.500

M Calc

15.

Chapter 6: Continuous Distributions 177 If x is uniformly distributed over the interval 8 to 12, inclusively (8 x 12), then P(x 10) is __________________. A. B. C. D. 0.750 0.000 0.333 0.500

E Calc

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 __________________. A. B. C. D. 1/10 1/20 1/30 1/50

E Calc

17.

If x is uniformly distributed over the interval 20 to 30, inclusively (20 x 30), then the mean () of this distribution is __________________. A. B. C. D. 50 25 10 5

M Calc

18.

If x is uniformly distributed over the interval 20 to 30, inclusively (20 x 30), then the standard deviation () of this distribution is __________________. A. B. C. D. incalculable 8.33 0.833 2.89

M Calc

19.

If x is uniformly distributed over the interval 20 to 30, inclusively (20 x 30), then P(25 x 28) is __________________. A. B. C. D. 0.250 0.500 0.300 1.000

M Calc

178 Test Bank 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 Calc A. B. C. D. 21. 0.250 0.333 0.375 0.000

If x is uniformly distributed over the interval 20 to 30, inclusively (20 x 30), then P(33 x 35) is __________________. A. B. C. D. 0.500 0.000 0.375 0.200

M Calc

22.

If x is uniformly distributed over the interval 20 to 30, inclusively (20 x 30), then P(x < 17) is __________________. A. B. C. D. 0.500 0.300 0.000 0.250

M Calc

23.

If x is uniformly distributed over the interval 20 to 30, inclusively (20 x 30), then P(x 22) is __________________. A. B. C. D. 0.200 0.300 0.000 0.250

M Calc

24.

If x is uniformly distributed over the interval 20 to 30, inclusively (20 x 30), then P(x 24) is __________________. A. B. C. D. 0.100 0.000 0.333 0.600

M Calc

25.

Chapter 6: Continuous Distributions 179 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 ____________. A. B. C. D. 20 hours 16 hours 14 hours 12 hours

M BCalc

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 ____________. A. B. C. D. 0.3333 0.6667 0.0000 0.2000

M BCalc

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 ____________. A. B. C. D. 0.3333 0.6667 0.4000 0.2000

M BCalc

28.

The normal distribution is an example of _______. A. B. C. D. a discrete distribution a continuous distribution a bimodal distribution an exponential distribution

E Term

180 Test Bank B 29. The total area underneath any normal curve is _______. E Term A. B. C. D. equal to the mean equal to 1 equal to the variance equal to the coefficient of variation

30.

The area to the left of the mean in any normal distribution is _______. A. B. C. D. equal to the mean equal to 1 equal to the variance equal to 0.5

E Term

31.

For any normal distribution, any value less than the mean would have a _______. A. B. C. D. positive z-score negative z-score negative variance negative probability of occurring

E Term

32.

A standardized normal distribution has the following characteristics: A. B. C. D. the mean and variance are both equal to 1 the mean and variance are both equal to 0 the mean is equal to the variance the mean is equal to 0 and the variance is equal to 1

E Term

C E Calc

33.

If x is a normal random variable with mean 80 and standard deviation 5, calculate the z score if x=88. A. B. C. D. 1.8 -1.8 1.6 -1.6

D E Calc D E

34.

If x is a normal random variable with mean 80 and standard deviation 5, calculate the z score if x=72. A. 1.8 B. -1.8 C. 1.6 D. -1.6 If x is a normal random variable with mean 80 and standard deviation 5, calculate the z score if x=92. A. 2.1

35.

Chapter 6: Continuous Distributions 181 Calc B. 12 C. 1.2 D. 2.4 36. If x is a normal random variable with mean 60 and standard deviation 2, calculate the z score if x=57. A. B. C. D. 37. 1.5 2.5 -1.5 -2.5

C E Calc

C M Calc

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? A. B. C. D. 63.4 56.6 66.8 53.2

D M Calc

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? A. B. C. D. 58.7 61.3 62.6 57.4

B E Calc

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). A. B. C. D. 0.4032 0.9032 0.0968 0.3485

182 Test Bank 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 Calc A. B. C. D. 41. 0.4032 0.9032 0.4893 0.0861

C M Calc

Let z be a normal random variable with mean 0 and standard deviation 1. Use the normal tables to find P(z > 2.4). A. B. C. D. 0.4918 0.9918 0.0082 0.4793

D M Calc

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). A. B. C. D. 0.4821 -0.4821 0.9821 0.0179

B M Calc

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). A. B. C. D. 0.3643 0.8643 0.1357 -0.1357

C M Calc

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). A. B. C. D. 0.3643 0.8643 0.1235 0.4878

B M Calc

45.

Chapter 6: Continuous Distributions 183 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). A. B. C. D. 0.3643 0.8521 0.1235 0.4878

C E Calc

46.

Let z be a normal random variable with mean 0 and standard deviation 1. The 50th percentile of z is ____________. A. B. C. D. 0.670 -1.254 0.000 1.280

A M Calc

47.

Let z be a normal random variable with mean 0 and standard deviation 1. The 75th percentile of z is ____________. A. B. C. D. 0.670 -1.254 0.000 1.280

D M Calc

48.

Let z be a normal random variable with mean 0 and standard deviation 1. The 90th percentile of z is ____________. A. B. C. D. 1.645 -1.254 1.960 1.280

A M Calc

49.

Let z be a normal random variable with mean 0 and standard deviation 1. The 95th percentile of z is ____________. A. B. C. D. 1.645 -1.254 1.960 1.280

184 Test Bank B 50. Let x be a normal random variable with mean 20 and standard deviation 4. Find P(x < 25). M Calc A. B. C. D. 51. 0.3944 0.8944 0.1056 0.6056

C M Calc

Let x be a normal random variable with mean 20 and standard deviation 4. Find P(x < 17). A. B. C. D. 0.2734 0.7734 0.2266 -0.2734

B M Calc

52.

Let x be a normal random variable with mean 20 and standard deviation 4. Find P(x < 19). A. B. C. D. 0.0987 0.4013 -0.0987 0.5987

D M Calc

53.

Let x be a normal random variable with mean 20 and standard deviation 4. Find P(16 < x < 22). A. B. C. D. 0.4672 0.0328 0.1498 0.5328

B E Calc

54.

Let x be a normal random variable with mean 20 and standard deviation 4. The 50th percentile of x is ____________. A. B. C. D. 4.000 20.000 22.698 26.579

C M Calc

55.

Chapter 6: Continuous Distributions 185 Let x be a normal random variable with mean 20 and standard deviation 4. The 75th percentile of x is ____________. A. B. C. D. 25.126 20.000 22.698 26.579

A M Calc

56.

Let x be a normal random variable with mean 20 and standard deviation 4. The 90th percentile of x is ____________. A. B. C. D. 25.126 20.000 22.698 26.579

D M Calc

57.

Let x be a normal random variable with mean 20 and standard deviation 4. The 95th percentile of x is ____________. A. B. C. D. 25.126 20.000 22.698 26.579

D M Calc

58.

Let x be a normal random variable with mean 40 and standard deviation 8. Find P(32 < x < 44). A. B. C. D. 0.4672 0.0328 0.1498 0.5328

A M Calc

59.

Let x be a normal random variable with mean 40 and standard deviation 8. Find P(x < 96). A. B. C. D. 1.0000 0.0000 0.0793 0.0575

186 Test Bank B 60. Let x be a normal random variable with mean 40 and standard deviation 2. Find P(x < 28). M Calc A. B. C. D. 61. 1.0000 0.0000 0.2580 0.0472

A z score is the number of __________ that a value is from the mean. A. B. C. D. variances standard deviations units miles

E Term

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

E Term

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

E Term

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? A. B. C. D. 0.4987 0.9987 0.0013 0.5013

M Calc

65.

Chapter 6: Continuous Distributions 187 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? A. B. C. D. 0.4772 0.9772 0.0228 0.5228

M Calc

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? A. B. C. D. 0.3849 0.8849 0.1151 0.6151

M Calc

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

H Calc

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. A. B. C. D. 446.6 353.4 400.039 405

H Calc

188 Test Bank 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 Calc A. B. C. D. 70. 432.9 396 367.1 404

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? A. B. C. D. 0.3944 0.8944 0.1056 0.6056

M Calc

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? A. B. C. D. 0.1915 0.6915 0.3085 0.8085

M Calc

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 _______. A. B. C. D. 820.0 902.4 808.0 812.8

H Calc

73.

Chapter 6: Continuous Distributions 189 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? A. B. C. D. 0.7888 0.8944 0.3944 0.1056

M Calc

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 _____________. A. B. C. D. 0.4772 0.0228 0.9772 0.9544

M BCalc

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 _____________. A. B. C. D. 0.4772 0.0228 0.9772 0.9544

M BCalc

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 investors net profit will be between $12,000 and $15,000 is _____________. A. B. C. D. 0.1859 0.3413 0.8413 0.4967

M BCalc

190 Test Bank 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 investors net gain will be at least $5,000 is _____________. M BCalc A. B. C. D. 0.1859 0.3413 0.8413 0.4967

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 workdays is ______. A. B. C. D. 0.0668 0.4332 0.5000 0.9332

M BCalc

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 workdays is _____. A. B. C. D. 0.0668 0.4332 0.5000 0.9332

M BCalc

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 _____. A. B. C. D. 0.0668 0.4332 0.5000 0.9332

M BCalc

81.

Chapter 6: Continuous Distributions 191 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 ____ workdays is 0.99. A. B. C. D. 211 187 223 200

M BCalc

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 ______________. A. B. C. D. 0.9542 0.9759 0.9974 0.6826

M BCalc

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 ___________. A. B. C. D. 0.0458 0.0228 0.0013 0.0241

M BCalc

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 ___________. A. B. C. D. 0.0458 0.0228 0.0013 0.0241

M BCalc

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

192

Test Bank _________. A. B. C. D. 0.8990 0.4495 0.9974 0.9500

M BCalc

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 _________. A. B. C. D. 0.1010 0.4495 0.0505 0.0010

M BCalc

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 _________. A. B. C. D. 0.0010 0.1010 0.0101 0.0505

M BCalc

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 _______. A. B. C. D. 20 16 3.2 8

E Calc

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 _______. A. B. C. D. 16 3.2 1.79 0.16

M Calc

Chapter 6: Continuous Distributions 193 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 _______. A. B. C. D. P(x>12) P(x>12.5) P(x>11.5) P(x<11.5)

M Term

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 _______. A. B. C. D. P(x>12) P(x>11.5) P(x>12.5) P(x<12.5)

M Term

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 _______. A. B. C. D. P(6<x<12) P(6.5<x<12.5) P(6.5<x<11.5) P(5.5<x<12.5)

H Calc

194 Test Bank 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 BCalc A. B. C. D. 30 50 10 300

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 _______________. A. B. C. D. 8.60 17.20 15.72 3.96

M BCalc

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 _______________. A. B. C. D. 8.60 17.20 15.72 3.96

H Calc

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 _______________. A. B. C. D. 0.9564 0.9435 0.9386 0.9874

H BCalc

B E

97.

The exponential distribution is an example of _______. A. a discrete distribution

Chapter 6: Continuous Distributions 195 Term B. a continuous distribution C. a bimodal distribution D. an normal distribution If arrivals at a bank follow a Poisson distribution, then the time between arrivals would be _______. A. B. C. D. normally distributed exponentially distributed a binomial distribution equal to lambda

98.

M Term

99.

For an exponential distribution with lambda () equal to 4 per minute, the mean () is __________. A. B. C. D. 4 0.25 0.5 1

E Term

C 100.

For an exponential distribution with lambda () equal to 4 per minute, the standard deviation () is _______. A. B. C. D. 4 0.5 0.25 1

M Term

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. A. B. C. D. 0.135 0.368 0.865 0.607

M Calc

196 Test Bank 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 Calc A. B. C. D. 0.018 0.064 0.936 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. A. B. C. D. 0.449 0.551 0.286 0.714

M Calc

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

M Calc

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 _____________. A. B. C. D. 2.167 minutes 10.000 minutes 0.167 minutes 2.500 minutes

E BCalc

B 106.

Chapter 6: Continuous Distributions 197 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 _____________. A. B. C. D. 0.0000 0.4493 0.1353 2.2255

M BCalc

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 _____________. A. B. C. D. 0.0000 0.4493 0.1353 0.0067

M BCalc

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 _____________. A. B. C. D. 0.8465 0.9817 0.0183 0.1535

M BCalc

D 109. E Term

The exponential distribution is _______. A. B. C. D. symmetric bimodal skewed to the left skewed to the right

B 110. E Term

The standard normal distribution is also called _______. A. B. C. D. an exponential distribution the z distribution a discrete distribution a finite distribution

198 Test Bank A 111. The normal distribution is also referred to as _______. E Term A. B. C. D. the Gaussian distribution the de Moivre distribution the exponential distribution 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. Medco Supplies Gauze-R-US 17 5

9 2

M BApp

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? _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________

113.

Chapter 6: Continuous Distributions 199 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

200

Test Bank 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 0.20 0.15 0.10 0.05 0.00 ($10,000) ($5,000)

f(x)

$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

115.

Chapter 6: Continuous Distributions 201 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 0.20 0.15 0.10 0.05 0.00 500

f(x)

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.

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Test Bank