EBTM 350 EXAM QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED
A discrete random variable is characterized by uncountable values, whereas a
continuous random variable assumes a countable number of distinct values.
False
Because many choices we make involve some degree of uncertainty, we are
better prepared for the eventual outcome if we can use _____ to describe which
events are likely and which are unlikely.
probability
What do we refer to events which include all outcomes in the sample space?
Exhaustive
The sum of the probabilities of any list of mutually exclusive and exhaustive
events is not always equal.
False
Johnny feels that he has an 85% chance of getting an A in Marketing and a 45%
chance of getting an A in Managerial Economics. He also believes he has a 35%
chance of getting an A in both classes. What is the probability that he does not
get an A in either of these courses?
.05
, A random variable summarizes the results of an experiment in terms of numerical
values and can be classified as _______ or _____ depending on the range of
values that it assumes.
discrete & continuous
An event is any subset of the outcomes of the experiment. It is called a _____
event if it contains a single outcome.
simple
An economist predicts a 70% chance that country A will perform poorly and a
35% chance that country B will perform poorly. There is also a 20% chance that
both countries will perform poorly. What is the probability that country A
performs poorly given that country B performs poorly?
.20/.35 =.57
Johnny feels that he has an 85% chance of getting an A in Marketing and a 45%
chance of getting an A in Managerial Economics. He also believes he has a 35%
chance of getting an A in both classes. What is the probability that he gets an A
in at least one of these courses?
.95
A manager believes that 20% of consumers will respond positively to the firm's
social media campaign. Also, 24% of those who respond positively will become
loyal customers. Find the probability that the next recipient of their social media
campaign will react positively and will become a loyal customer.
P(R ∩ L) =P(L∣R)P(R) = 0.24 × 0.20 =.048
SOLUTIONS VERIFIED
A discrete random variable is characterized by uncountable values, whereas a
continuous random variable assumes a countable number of distinct values.
False
Because many choices we make involve some degree of uncertainty, we are
better prepared for the eventual outcome if we can use _____ to describe which
events are likely and which are unlikely.
probability
What do we refer to events which include all outcomes in the sample space?
Exhaustive
The sum of the probabilities of any list of mutually exclusive and exhaustive
events is not always equal.
False
Johnny feels that he has an 85% chance of getting an A in Marketing and a 45%
chance of getting an A in Managerial Economics. He also believes he has a 35%
chance of getting an A in both classes. What is the probability that he does not
get an A in either of these courses?
.05
, A random variable summarizes the results of an experiment in terms of numerical
values and can be classified as _______ or _____ depending on the range of
values that it assumes.
discrete & continuous
An event is any subset of the outcomes of the experiment. It is called a _____
event if it contains a single outcome.
simple
An economist predicts a 70% chance that country A will perform poorly and a
35% chance that country B will perform poorly. There is also a 20% chance that
both countries will perform poorly. What is the probability that country A
performs poorly given that country B performs poorly?
.20/.35 =.57
Johnny feels that he has an 85% chance of getting an A in Marketing and a 45%
chance of getting an A in Managerial Economics. He also believes he has a 35%
chance of getting an A in both classes. What is the probability that he gets an A
in at least one of these courses?
.95
A manager believes that 20% of consumers will respond positively to the firm's
social media campaign. Also, 24% of those who respond positively will become
loyal customers. Find the probability that the next recipient of their social media
campaign will react positively and will become a loyal customer.
P(R ∩ L) =P(L∣R)P(R) = 0.24 × 0.20 =.048
