Statistics for Business And Economics 8th Edition By Paul Newbold – Test Bank

Statistics for Business And Economics 8th Edition By Paul Newbold – Test Bank

Statistics for Business and Economics, 8e (Newbold)

Chapter 4   Discrete Random Variables and Probability Distributions

1) A variable that can take on a finite and countable number of values is a ________ variable.

A) qualitative

B) discrete

C) continuous

D) Poisson

Answer:  B

Difficulty:  Easy

Topic:  Random Variables

AACSB:  Reflective Thinking Skills

Course LO:  Explain the characteristics and applications of discrete probability distributions

2) Which of the following is true about a probability distribution?

A) The sum of all possible outcomes must not equal 1.

B) The representation must be graphed, not tabular or algebraic.

C) The probability of each outcome must be between 0 and 1, inclusive.

D) The outcomes do not need to be mutually exclusive.

Answer:  C

Difficulty:  Moderate

Topic:  Probability Distributions for Discrete Random Variables

AACSB:  Reflective Thinking Skills

Course LO:  Explain the characteristics and applications of discrete probability distributions

3) A random variable that takes on no more than a countable number of values is called a(n):

A) continuous random variable.

B) outcome.

C) statistic.

D) discrete random variable.

Answer:  D

Difficulty:  Easy

Topic:  Random Variables

AACSB:  Reflective Thinking Skills

Course LO:  Explain the characteristics and applications of discrete probability distributions

4) The probability distribution function can be represented in a graph once the probabilities have been:

A) calculated.

B) ordered.

C) alphabetized.

D) journalized.

Answer:  A

Difficulty:  Easy

Topic:  Probability Distributions for Discrete Random Variables

AACSB:  Reflective Thinking Skills

Course LO:  Explain the characteristics and applications of discrete probability distributions

5) The expected value of a random variable, denoted μ, is also called its:

A) mode.

B) median.

C) mean.

D) variance.

Answer:  C

Difficulty:  Easy

Topic:  Properties of Discrete Random Variables

AACSB:  Reflective Thinking Skills

Course LO:  Explain the characteristics and applications of discrete probability distributions