Strayer Mt540 week 3 quiz

Question 1

1. Probability trees are used only to compute conditional probabilities.
   

   Answer

   True

   False

2 points

Question 2

1. Seventy two percent of all observations fall within 1 standard deviation of the mean if the data is normally distributed.
   

   Answer

   True

   False

2 points

Question 3

1. If two events are not mutually exclusive, then P(A or B) = P(A) + P(B)
   

   Answer

   True

   False

2 points

Question 4

1. Using the minimax regret criterion, we first construct a table of regrets.Subsequently, for each possible decision, we look across the states of nature and make a note of the maximum regret possible for that decision.We then pick the decision with the largest maximum regret.
   

   Answer

   True

   False

2 points

Question 5

1. Both maximin and minimin criteria are optimistic.
   

   Answer

   True

   False

2 points

Question 6

1. The Hurwicz criterion is a compromise between the maximax and maximin criteria.
   

   Answer

   True

   False

2 points

Question 7

1. The minimin criterion is optimistic.
   

   Answer

   True

   False

2 points

Question 8

1. The metropolitan airport commission is considering the establishment of limitations on noise pollution around a local airport. At the present time, the noise level per jet takeoff in one neighborhood near the airport is approximately normally distributed with a mean of 100 decibels and a standard deviation of 3 decibels. What is the probability that a randomly selected jet will generate a noise level of more than 105 decibels?

   Answer

   		0.0228
   		0.0475
   		0.0485
   		0.0500

2 points

Question 9

1. A professor would like to utilize the normal distribution to assign grades such that 5% of students receive A's. If the exam average is 62 with a standard deviation of 13, what grade should be the cutoff for an A? (Round your answer.)

   Answer

   		80
   		83
   		90
   		93

2 points

Question 10

1. The chi-square test is a statistical test to see if an observed data fit a _________.

   Answer

   		Normal probability distribution
   		continuous probability distribution
   		particular probability distribution
   		All of the above

2 points

Question 11

1. A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow.
   
   
   
   The maximax strategy is:

   Answer

   		Rent
   		Buy
   		Brisk
   		Slow

2 points

Question 12

1. A group of friends are planning a recreational outing and have constructed the following payoff table to help them decide which activity to engage in. Assume that the payoffs represent their level of enjoyment for each activity under the various weather conditions.
   
   Weather
   Cold Warm Rainy
   S1 S2 S3
   Bike: A1 10 8 6
   Hike: A2 14 15 2
   Fish: A3 7 8 9
   
   What is the conservative decision for this situation?

   Answer

   		A1
   		A2
   		A3
   		Any of the above

2 points

Question 13

1. Determining the worst payoff for each alternative and choosing the alternative with the best worst is called

   Answer

   		maximax
   		minimin
   		maximin
   		minimax

2 points

Question 14

1. A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow.
   
   
   
   The maximin strategy is:

   Answer

   		Buy
   		Rent
   		Lease
   		All three tie.

2 points

Question 15

1. A life insurance company wants to update its actuarial tables. Assume that the probability distribution of the lifetimes of the participants is approximately a normal distribution with a mean of 71 years and a standard deviation of 3.5 years. What proportion of the plan participants are expected to see their 75th birthday?Note: Write your answers with two places after the decimal, rounding off as appropriate.
   

   Answer

2 points

Question 16

1. A brand of television has a lifetime that is normally distributed with a mean of 7 years and a standard deviation of 2.5 years. What is the probability that a randomly chosen TV will last more than 8 years?Note: Write your answers with two places after the decimal, rounding off as appropriate.

   Answer

2 points

Question 17

1. The quality control manager for ENTA Inc. must decide whether to accept (a1), further analyze (a2) or reject (a3) a lot of incoming material. Assume the following payoff table is available. Historical data indicates that there is 30% chance that the lot is poor quality (s1), 50 % chance that the lot is fair quality (s2) and 20% chance that the lot is good quality (s3).
   
   
   
   What is the numerical value of the minimax regret?
   

   Answer

2 points

Question 18

1. A group of friends are planning a recreational outing and have constructed the following payoff table to help them decide which activity to engage in. Assume that the payoffs represent their level of enjoyment for each activity under the various weather conditions.
   
   Weather
   Cold Warm Rainy
   S1 S2 S3
   Bike: A1 10 8 6
   Hike: A2 14 15 2
   Fish: A3 7 8 9
   
   If the probabilities of cold weather (S1), warm weather (S2), and rainy weather (S3) are 0.2, 0.4, and 0.4, respectively what is the EVPI for this situation?
   

   Answer

2 points

Question 19

1. A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow.
   
   
   
   If the probability of brisk business is .40, what is the numerical maximum expected value?
   

   Answer

2 points

Question 20

1. Consider the following decision tree.
   
   
   
   What is the expected value for the best decision? Round your answer to the nearest whole number.

   Answer