Submitted by: Submitted by menukal
Views: 10
Words: 1895
Pages: 8
Category: Business and Industry
Date Submitted: 08/14/2016 05:49 PM
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) If two events are mutually exclusive, what is the probability that one or the other occurs?
A) 0
B) 1.00
C) 0.50
D) cannot be determined from the information given
2) If two equally likely events A and B are mutually exclusive and collectively exhaustive, what is the probability
that event A occurs?
A) 0
B) 1.00
C) 0.50
D) cannot be determined from the information given
3) If two events are independent, what is the probability that they both occur?
A) 0.50
B) 0
C) 1.00
D) cannot be determined from the information given
4) A business venture can result in the following outcomes (with their corresponding chance of occurring in
parentheses): Highly Successful (10%), Successful (25%), Break Even (25%), Disappointing (20%), and Highly
Disappointing (?). If these are the only outcomes possible for the business venture, what is the chance that the
business venture will be considered Highly Disappointing?
A) 25%
B) 20%
C) 10%
D) 15%
5) A recent survey of banks revealed the following distribution for the interest rate being charged on a home loan
(based on a 30‐year mortgage with a 10% down payment).
Interest Rate
Probability
7.0%
0.12
7.5%
0.23
8.0%
0.24
8.5%
0.35
> 8.5%
0.06
If a bank is selected at random from this distribution, what is the chance that the interest rate charged on a
home loan will exceed 8.0%?
A) 0.41
B) 0.06
C) 1.00
D) 0.59
6) The probability that house sales will increase in the next 6 months is estimated to be 0.25. The probability that
the interest rates on housing loans will go up in the same period is estimated to be 0.74. The probability that
house sales or interest rates will go up during the next 6 months is estimated to be 0.89. What is the probability
that both house sales and interest rates will increase during the next 6 months?
A) 0.185
B) 0.10
C) 0.705
D) 0.90
7)...