Midterm 1 Exam STAT 211 Section 505 (Type A) February 21, 2013

Instructor: Mikyoung Jun

Provide the following information:

Name :

UIN:

Important: read the following instructions carefully.

Do not turn the page until told to do so.
This is a closed book examination. You may use your calculator, and one double-sided sheet
of formulas that you have brought with you. You should have no other printed or written
material with you on the exam.
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Mark the correct choice using a soft (No. 2) pencil. Sheets completed with pens or hard
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for clarification.
If you think there are multiple correct answers, choose the best answer.
Your scantron wont be returned to you, so it is a good idea that you mark your choices on
your exam papers as well to have a copy of your answers.
Turn in your answer sheet along with the exam when you are done.
This exam has 5 pages (20 questions total). It is your responsibility to make sure you have
all 5 pages.
Each question is worth 5 points. If you get all of the correct, you will receive 100 points.
Do not forget to mark your exam type (A, B, or C) in your scantron sheet!! Any
problem caused by not marking your exam type on your scantron sheet is your
responsibility.

1. Which one of the following statements is incorrect?

A. In a histogram, the area of each rectangle gives the relative frequency of the class
B. The sample mean is more sensitive to the outliers than the median

C. If X is a discrete random variable, P (X = a) is always positive

for any a.
D. The sample standard deviation should be always non-negative
E. None of the above
2. Suppose an exam is given to a large class and their grade distribution is given as below.

0.03
0.00

Density

Grade distribution

20

40

60

80

100

score
Which one of the following statements is true?
A. The median should be bigger than the mean
B. The grade distribution has a symmetric shape

C. Sum of the areas of all the rectangles is 1 (100%)

D. The grade distribution can be properly modeled by a Normal distribution
E. None of the above
3. Which one of the following statements is correct?
A. For any symmetric distribution, the mean and median are always the same
B. For a standard normal distribution, the median is always zero
C. For a data set, its sample standard deviation has the same unit as the data
D. Along with sample variance and sample standard deviation, IQR is a measure of spread of a distribution

E. All of the above

4. Suppose in a parking lot, the percentage of Honda cars (cars manufactured by Honda) parked is 60%, the
percentage of four-door sedan is 60% and the percentage of white cars is 35%. Also, the percentage of white
four-door Honda cars is 10 %. The percentage of cars that are either white or made by Honda is 70 %. If
you randomly select a car from this parking lot, what is the chance this car is a white, Honda car that is not
four-door sedan?
A. 0.35
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B. 0.126
C. 0.1

D. 0.15
E. We do not have enough information
5. In the previous problem, are the color and brand of cars independent?
A. Yes, since the chance for a car to be white and manufactured by Honda is the product of the chance for a
car to be white and the chance for the car manufactured by Honda

B. No, since the chance for a car to be white and manufactured by

Honda is not the product of the chance for a car to be white and the
chance for the car manufactured by Honda
C. Yes, since the chance for a car to be white and manufactured by Honda is not the product of the chance
for a car to be white and the chance for the car manufactured by Honda
D. No, since the chance for a car to be white and manufactured by Honda is not the sum of the chance for a
car to be white and the chance for the car manufactured by Honda
E. We do not have enough information to answer this
6. Suppose teams A and B are in the world series and the series ends when the winning team wins 4 games.
Assume the chance that team A will win each game in the series is 0.3. What is the chance that the series
will last 5 games?
A. 0.25
B. 0.02268
C. 0.045
D. 0.29

E. 0.3108
7. In the previous problem, given the fact that the series lasts 5 games, what is the chance that team A is the
winner?
A. 0.3
B. 0.5
C. 0.02268
D. 0.079

E. 0.073
8. Regarding the previous problem, in the world series with teams A and B, on average, how many games do we
expect? That is, what is the expected number of games to be played in this world series?

A. 5.38 games
B. 3.5 games
C. 4.08 games
D. 7 games
E. 3 games
9. Suppose we have 5 numbers, x1 , . . . , x5 , and their mean is 10 and their standard deviation is 0.1. What are
the mean and the standard deviation for 2x1 1, . . . , 2x5 1, that is how do mean and standard deviation
change if we multiply 2 and subtract 1 from the original numbers?
A. mean=21, standard deviation=0.4

B. mean=21, standard deviation=0.2

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C. mean=21, standard deviation= 2/10
D. mean=21, standard deviation=0.2
E. mean=10, standard deviation=0.1
10. Suppose Jane is at a bus stop and a bus arrives once every 25 minutes on average as a Poisson process. If
Jane has been at the bus stop for an hour (she just waits there but does not take a bus!), what is the chance
that at least 2 buses have passed by during that time?
A. 0.09

B. 0.69
C. 0.91
D. 0.31
E. 0.5
11. In the previous problem, suppose now that Jane is going to catch the third bus stopping at the stop. Then
what is the expected wait time for Jane to to catch the third bus?
A. 25 min

B. 75 min
C. 80 min
D. 60 min
E. We do not have enough information to answer this
12. Let X be the damage incurred (in $) in a certain type of accident during a given year. Possible X values are 0,
1000, 5000, and 10000, with probabilities .65, .25, 0.09, and 0.01, respectively. A customer wants to purchase
a policy with the deductible amount $ 500 and the company needs to make at least $ 600 from this customer
as its expected profit. Then, how much premium does the company have to charge for this customer?
A. $ 925
B. $ 512.5

C. $ 900
D. $ 800
E. $ 500
13. Suppose individuals with a certain gene have a 0.2 probability of eventually contracting a certain disease. If
100 individuals with the gene participate in a lifetime study, then what is the expected number of individuals
who will contract the disease?
A. 80

B. 20
C. 50
D. 2
E. 100
14. In the previous problem, what is the chance that at least 50 individuals will contract the disease?

50 50
A. 100
50 0.2 0.8

50 50
B. 100
50 0.5 0.5

C.

D.
E.

P100

100
k=50 k

0.2k 0.8100k

100
k
100k
k=50
k 0.2 0.8
P50 100
k 100k
k=0
k 0.2 0.8

15. In the previous problem, if X is the random variable that gives number of individuals who contract the disease
out of 100 individuals in the study, what is E(X 2 )? (Hint: you do not need to do the summation with 100
terms in it!)

A. 416
B. 16
C. 400
D. 384
E. We do not have enough information to answer this
16. A company has launched a new website to sell its products and they know from the past experience that
the purchases at the site will occur as a Poisson process with on average 84 purchases every hour. If the
companys goal is to sell 100,000 products, how many days are expected for the company to reach their goal?
A. 1190 days

B. 50 days
C. 10 days
D. 2 days
E. 6 days
17. Suppose X is a continuous random variable whose cdf is given by the following:
F (x) =

1 e2x
0

x>0
x0

What is E(X)?
A. 2

B. 0.5
C. 0.25
D.

E. We cannot find E(X) since F is not a valid cdf

18. Let X denote the midterm 1 score of stat 211-50x students in a semester and X follows a normal distribution
with mean 70 and standard deviation 15. Suppose the instructor gives an F to the students who got less than
30. What is the percentage of students who would get F? Note that for a standard normal random variable
Z, (2.67) = P (Z 2.67) = 0.996 and (0.18) = P (Z 0.18) = 0.57.

A. 0.4%
B. Approximately 0%
C. 57%
D. 43%
E. 99.6%
19. In the previous problem, what is the percentage of students whose scores are between 40 and 80? Note
that for a standard normal random variable Z, (2) = P (Z 2) = 0.98, (0.13) = P (Z 0.13) = 0.55,
(0.67) = P (Z 0.67) = 0.75, (0.044) = P (Z 0.044) = 0.52.
A. 0.23

B. 0.73
C. 0.3
D. 0.5
E. 0.46
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20. In the previous problem, what is the 75th percentile of X? Note that the 25th percentile of a standard normal
distribution is 0.674.
A. 59.89

B. 80.11
C. 81.65
D. 75
E. We do not have enough information