chap06TIFBSAFC5.docx

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chap06TIFBSAFC5

CHAPTER6:

THENORMALDISTRIBUTION

1.Initsstandardizedform,thenormaldistribution

a)hasameanof0andastandarddeviationof1.

b)hasameanof1andavarianceof0.

c)hasanareaequalto0.5.

d)cannotbeusedtoapproximatediscreteprobabilitydistributions.

ANSWER:

a

TYPE:

MCDIFFICULTY:

Easy

KEYWORDS:

standardizednormaldistribution,properties

2.Whichofthefollowingaboutthenormaldistributionisnottrue?

a)Theoretically,themean,median,andmodearethesame.

b)About2/3oftheobservationsfallwithin

1standarddeviationfromthemean.

c)Itisadiscreteprobabilitydistribution.

d)Itsparametersarethemean,

andstandarddeviation,

.

ANSWER:

c

TYPE:

MCDIFFICULTY:

Easy

KEYWORDS:

normaldistribution,properties

3.Ifaparticularbatchofdataisapproximatelynormallydistributed,wewouldfindthatapproximately

a)2ofevery3observationswouldfallbetween

1standarddeviationaroundthemean.

b)4ofevery5observationswouldfallbetween

1.28standarddeviationsaroundthemean.

c)19ofevery20observationswouldfallbetween

2standarddeviationsaroundthemean.

d)Alltheabove.

ANSWER:

d

TYPE:

MCDIFFICULTY:

Easy

KEYWORDS:

normaldistribution,properties

4.ForsomepositivevalueofZ,theprobabilitythatastandardnormalvariableisbetween0andZis0.3770.ThevalueofZis

a)0.18

b)0.81

c)1.16

d)1.47

ANSWER:

c

TYPE:

MCDIFFICULTY:

Moderate

KEYWORDS:

standardizednormaldistribution,value

5.ForsomevalueofZ,theprobabilitythatastandardnormalvariableisbelowZis0.2090.ThevalueofZis

a)–0.81

b)–0.31

c)0.31

d)1.96

ANSWER:

a

TYPE:

MCDIFFICULTY:

Moderate

KEYWORDS:

standardizednormaldistribution,value

6.ForsomepositivevalueofZ,theprobabilitythatastandardnormalvariableisbetween0andZis0.3340.ThevalueofZis

a)0.07

b)0.37

c)0.97

d)1.06

ANSWER:

c

TYPE:

MCDIFFICULTY:

Moderate

KEYWORDS:

standardizednormaldistribution,value

7.ForsomepositivevalueofX,theprobabilitythatastandardnormalvariableisbetween0and+2Xis0.1255.ThevalueofXis

a)0.99

b)0.40

c)0.32

d)0.16

ANSWER:

d

TYPE:

MCDIFFICULTY:

Difficult

KEYWORDS:

normaldistribution,value

8.ForsomepositivevalueofX,theprobabilitythatastandardnormalvariableisbetween0and+1.5Xis0.4332.ThevalueofXis

a)0.10

b)0.50

c)1.00

d)1.50

ANSWER:

c

TYPE:

MCDIFFICULTY:

Difficult

KEYWORDS:

normaldistribution,value

9.GiventhatXisanormallydistributedrandomvariablewithameanof50andastandarddeviationof2,findtheprobabilitythatXisbetween47and54.

ANSWER:

0.9104

TYPE:

PRDIFFICULTY:

Easy

KEYWORDS:

normaldistribution,probability

10.Acompanythatsellsannuitiesmustbasetheannualpayoutontheprobabilitydistributionofthelengthoflifeoftheparticipantsintheplan.Supposetheprobabilitydistributionofthelifetimesoftheparticipantsisapproximatelyanormaldistributionwithameanof68yearsandastandarddeviationof3.5years.Whatproportionoftheplanrecipientswouldreceivepaymentsbeyondage75?

ANSWER:

0.0228

TYPE:

PRDIFFICULTY:

Easy

KEYWORDS:

normaldistribution,probability

11.Acompanythatsellsannuitiesmustbasetheannualpayoutontheprobabilitydistributionofthelengthoflifeoftheparticipantsintheplan.Supposetheprobabilitydistributionofthelifetimesoftheparticipantsisapproximatelyanormaldistributionwithameanof68yearsandastandarddeviationof3.5years.Whatproportionoftheplanrecipientsdiebeforetheyreachthestandardretirementageof65?

ANSWER:

0.1957usingExcelor0.1949usingTableE.2

TYPE:

PRDIFFICULTY:

Moderate

KEYWORDS:

normaldistribution,probability

12.Acompanythatsellsannuitiesmustbasetheannualpayoutontheprobabilitydistributionofthelengthoflifeoftheparticipantsintheplan.Supposetheprobabilitydistributionofthelifetimesoftheparticipantsisapproximatelyanormaldistributionwithameanof68yearsandastandarddeviationof3.5years.Findtheageatwhichpaymentshaveceasedforapproximately86%oftheplanparticipants.

ANSWER:

71.78yearsold

TYPE:

PRDIFFICULTY:

Difficult

KEYWORDS:

normaldistribution,value

13.Ifweknowthatthelengthoftimeittakesacollegestudenttofindaparkingspotinthelibraryparkinglotfollowsanormaldistributionwithameanof3.5minutesandastandarddeviationof1minute,findtheprobabilitythatarandomlyselectedcollegestudentwillfindaparkingspotinthelibraryparkinglotinlessthan3minutes.

a)0.3551

b)0.3085

c)0.2674

d)0.1915

ANSWER:

b

TYPE:

MCDIFFICULTY:

Easy

KEYWORDS:

normaldistribution,probability

14.Ifweknowthatthelengthoftimeittakesacollegestudenttofindaparkingspotinthelibraryparkinglotfollowsanormaldistributionwithameanof3.5minutesandastandarddeviationof1minute,findtheprobabilitythatarandomlyselectedcollegestudentwilltakebetween2and4.5minutestofindaparkingspotinthelibraryparkinglot.

a)0.0919

b)0.2255

c)0.4938

d)0.7745

ANSWER:

d

TYPE:

MCDIFFICULTY:

Easy

KEYWORDS:

normaldistribution,probability

15.Ifweknowthatthelengthoftimeittakesacollegestudenttofindaparkingspotinthelibraryparkinglotfollowsanormaldistributionwithameanof3.5minutesandastandarddeviationof1minute,findthepointinthedistributioninwhich75.8%ofthecollegestudentsexceedwhentryingtofindaparkingspotinthelibraryparkinglot.

a)2.8minutes

b)3.2minutes

c)3.4minutes

d)4.2minutes

ANSWER:

a

TYPE:

MCDIFFICULTY:

Moderate

KEYWORDS:

normaldistribution,value

16.Theownerofafishmarketdeterminedthattheaverageweightforacatfishis3.2poundswithastandarddeviationof0.8pound.Assumingtheweightsofcatfisharenormallydistributed,theprobabilitythatarandomlyselectedcatfishwillweighmorethan4.4poundsis_______?

ANSWER:

0.0668

TYPE:

FIDIFFICULTY:

Easy

KEYWORDS:

normaldistribution,probability

17.Theownerofafishmarketdeterminedthattheaverageweightforacatfishis3.2poundswithastandarddeviationof0.8pound.Assumingtheweightsofcatfisharenormallydistributed,theprobabilitythatarandomlyselectedcatfishwillweighbetween3and5poundsis_______?

ANSWER:

0.5865

TYPE:

FIDIFFICULTY:

Easy

KEYWORDS:

normaldistribution,probability

18.Theownerofafishmarketdeterminedthattheaverageweightforacatfishis3.2poundswithastandarddeviationof0.8pound.Acitationcatfishshouldbeoneofthetop2%inweight.Assumingtheweightsofcatfisharenormallydistributed,atwhatweight(inpounds)shouldthecitationdesignationbeestablished?

a)1.56pounds

b)4.84pounds

c)5.20pounds

d)7.36pounds

ANSWER:

b

TYPE:

MCDIFFICULTY:

Moderate

KEYWORDS:

normaldistribution,value

19.Theownerofafishmarketdeterminedthattheaverageweightforacatfishis3.2poundswithastandarddeviationof0.8pound.Assumingtheweightsofcatfisharenormallydistributed,abovewhatweight(inpounds)do89.80%oftheweightsoccur?

ANSWER:

2.184pounds

TYPE:

PRDIFFICULTY:

Moderate

KEYWORDS:

normaldistribution,value

20.Theownerofafishmarketdeterminedthattheaverageweightforacatfishis3.2poundswithastandarddeviationof0.8pound.Assumingtheweightsofcatfisharenormallydistributed,theprobabilitythatarandomlyselectedcatfishwillweighlessthan2.2poundsis_______?

ANSWER:

0.1056

TYPE:

FIDIFFICULTY:

Easy

KEYWORDS:

normaldistribution,probability

21.Afoodprocessorpackagesorangejuiceinsmalljars.Theweightsofthefilledjarsareapproximatelynormallydistributedwithameanof10.5ouncesandastandarddeviationof0.3ounce.Findtheproportionofalljarspackagedbythisprocessthathaveweightsthatfallbelow10.875ounces.

ANSWER:

0.8944

TYPE:

PRDIFFICULTY:

Easy

KEYWORDS:

normaldistribution,probability

22.Afoodprocessorpackagesorangejuiceinsmalljars.Theweightsofthefilledjarsareapproximatelynormallydistributedwithameanof10.5ouncesandastandarddeviationof0.3ounce.Findtheproportionofalljarspackagedbythisprocessthathaveweightsthatfallabove10.95ounces.

ANSWER:

0.0668

TYPE:

PRDIFFICULTY:

Easy

KEYWORDS:

normaldistribution,probability

23.TrueorFalse:

Theprobabilitythatastandardnormalrandomvariable,Z,fallsbetween–1.50and0.81is0.7242.

ANSWER:

True

TYPE:

TFDIFFICULTY:

Easy

KEYWORDS:

standardizednormaldistribution,probability

24.TrueorFalse:

Theprobabilitythatastandardnormalrandomvariable,Z,isbetween1.50and2.10isthesameastheprobabilityZisbetween–2.10and–1.50.

ANSWER:

True

TYPE:

TFDIFFICULTY:

Easy

KEYWORDS:

standardizednormaldistribution,probability

25.TrueorFalse:

Theprobabilitythatastandardnormalrandomvariable,Z,isbelow1.96is0.4750.

ANSWER:

False

TYPE:

TFDIFFICULTY:

Easy

KEYWORDS:

standardizednormaldistribution,probability

26.TrueorFalse:

Theprobabilitythatastandardnormalrandomvariable,Z,isbetween1.00and3.00is0.1574.

ANSWER:

True

TYPE:

TFDIFFICULTY:

Easy

KEYWORDS:

standardizednormaldistribution,probability

27.TrueorFalse:

Theprobabilitythatastandardnormalrandomvariable,Z,fallsbetween–2.00and–0.44is0.6472.

ANSWER:

False

TYPE:

TFDIFFICULTY:

Easy

KEYWORDS:

standardizednormaldistribution,probability

28.TrueorFalse:

Theprobabilitythatastandardnormalrandomvariable,Z,islessthan5.0isapproximately0.

ANSWER:

False

TYPE:

TFDIFFICULTY:

Easy

KEYWORDS:

standardizednormaldistribution,probability

29.TrueorFalse:

Aworkerearns$15perhourataplantandistoldthatonly2.5%ofallworkersmakea

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