Econ 2300 ch 5 quiz

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Econ2300
assignment: Ch5 Quiz

1.
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5.00 points

Exercise 5.12 METHODS AND APPLICATIONS
Suppose that the probability distribution of a random variable x can be described by the formula

P(x) = x
________________________________________
15

for each of the values x = 1, 2, 3, 4, and 5. For example, then, P(x = 2) = p(2) =2/15.

(a) Write out the probability distribution of x. (Write all fractions in reduced form.)

x 1 2 3 4 5

P(x) ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________

________________________________________

(b) Show that the probability distribution of x satisfies the properties of a discrete probability distribution.(Round other answers to the nearest whole number. Leave no cells blank – be certain to enter “0” wherever required.)

P(x) ≥ for each value of x.

µx

(d) Calculate the variance, σ2x , and the standard deviation, σx. (Round your answer σx2 in to 3 decimal places and round answer σx in to 4 decimal places.)

σx2

σx

2.
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5.00 points

Exercise 5.23 METHODS AND APPLICATIONS
Suppose that x is a binomial random variable with n = 5, p = 0.3, and q = 0.7.

(b) For each value of x, calculate p(x), and graph the binomial distribution. (Round final answers to 5 decimal places.)

p(0) = , p(1) = , p(2) = , p (3) = ,
p(4) = , p(5) =

(d) Find P(x ≤ 3). (Do not round intermediate calculations. Round final answer to 5 decimal places.)

P(x ≤ 3)

(e) Find P(x < 3). (Do not round intermediate calculations. Round final answer to 5 decimal places.)

P(x < 3) = P(x ≤ 2)

(f) Find P(x ≥ 4). (Do not round intermediate calculations. Round final answer to 5 decimal places.)

P(x ≥ 4)

(g) Find P(x > 2). (Do not round intermediate calculations. Round final answer to 5 decimal places.)

P(x > 2)

(h) Use the probabilities you computed in part b to calculate the mean, μx, the variance, σ 2x, and the standard deviation, σx, of this binomial distribution. Show that the formulas for μx , σ 2x, and σx given in this section give the same results. (Do not round intermediate calculations. Round final answers to µx and σ 2x in to 2 decimal places, and σx in to 6 decimal places.)

µx

σ2x

σx

(i) Calculate the interval [μx ± 2σx]. Use the probabilities of part b to find the probability that x will be in this interval. Hint: When calculating probability, round up the lower interval to next whole number and round down the upper interval to previous whole number. (Round your answers to 5 decimal places. A negative sign should be used instead of parentheses.)

The interval is [ , ].

P( ≤ x ≤ ) =

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MC Qu. 14 The mean of the binomial distribution is equ…
The mean of the binomial distribution is equal to:

p

np

(n) (p) (1-p)

px (1-p)n-x
5.
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MC Qu. 25 A fair die is rolled 10 times. What is the p…
A fair die is rolled 10 times. What is the probability that an odd number (1, 3, or 5) will occur less than 3 times?

.1550

.8450

.0547

.7752

.1172
8.
award:
3 out of
3.00 points

MC Qu. 31 If n = 20 and p = .4, then the mean of the b…
If n = 20 and p = .4, then the mean of the binomial distribution is

.4

4.8

8

12
10.
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3 out of
3.00 points

MC Qu. 36 The probability that a given computer chip w…
The probability that a given computer chip will fail is 0.02. Find the probability that of 5 delivered chips, exactly 2 will fail.

.9039

.0000

.0922

.0038
12.
award:
3 out of
3.00 points

MC Qu. 38 In the most recent election, 19% of all elig…
In the most recent election, 19% of all eligible college students voted. If a random sample of 20 students were surveyed:
Find the probability that exactly half voted in the election.

.4997

.0014

.0148

.0000
13.
award:
3 out of
3.00 points

MC Qu. 39 In the most recent election, 19% of all elig…
In the most recent election, 19% of all eligible college students voted. If a random sample of 20 students were surveyed:
Find the probability that none of the students voted.

.0148

.4997

.0014

.0000
21.
award:
3 out of
3.00 points

MC Qu. 55 For a random variable X, the mean value of t…
For a random variable X, the mean value of the squared deviations of its values from their expected value is called its

Standard Deviation

Mean

Probability

Variance
25.
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MC Qu. 62 If the probability distribution of X is:&nbs…
If the probability distribution of X is:

What is the expected value of X?

2.25

2.24

1.0

5.0

26.
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MC Qu. 63 If the probability distribution of X is:&nbs…
If the probability distribution of X is:

What is the variance of X?

5.0
→
1.0

2.25

2.24

28.
award:
0 out of
3.00 points

MC Qu. 66 A vaccine is 95 percent effective. What is t…
A vaccine is 95 percent effective. What is the probability that it is not effective for, more than one out of 20 individuals?

.3774

.7359
→
.2641

.3585
P(X ≥ 2) = 1 – [P(X = 0) + p(X = 1)]
P(X ≥ 2) = 1 – [(.3585) + (.3774)] = .2641

29.
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3 out of
3.00 points

MC Qu. 67 If the probability of a success on a single …
If the probability of a success on a single trial is .2, what is the probability of obtaining 3 successes in 10 trials if the number of successes is binomial?

.1074

.2013

.5033

.0031

31.
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MC Qu. 78 For a binomial process, the probability of s…
For a binomial process, the probability of success is 40% and the number of trials is 5.
Find the expected value.

5.0

1.1

1.2

2.0
E[X] = (5) (.40) = 2
32.
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0 out of
3.00 points

MC Qu. 79 For a binomial process, the probability of s…
For a binomial process, the probability of success is 40% and the number of trials is 5.
Find the variance.

1.1
→
1.2

5.0

2.0

33.
award:
3 out of
3.00 points

MC Qu. 80 For a binomial process, the probability of s…
For a binomial process, the probability of success is 40% and the number of trials is 5.
Find the standard deviation.

1.1

5.0

2.0

1.2

34.
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3 out of
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MC Qu. 82 For a binomial process, the probability of s…
For a binomial process, the probability of success is 40% and the number of trials is 5.
Find P(X > 4).

.0102

.0778

.0870

.3370
P(X = 5) = (.4)5 = .0102
37.
award:
3 out of
3.00 points

MC Qu. 92 If X has the probability distribution%…
If X has the probability distribution

compute the expected value of X.

0.5

0.7

1.0

0.3
E[X] = -1(.2) + 0(.3) + 1(.5) = .3
38.
award:
3 out of
3.00 points

MC Qu. 93 If X has the probability distribution%…
If X has the probability distribution

compute the expected value of X.

1.3

2.4

1.0

1.8
E[X] = (-2) (.2) + (-1) (.2) + (1) (.2) + (2) (.2) + (9) (.2) = 1.8
40.
award:
0 out of
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MC Qu. 95 X has the following probability distribution…
X has the following probability distribution P(X):

Compute the variance value of X.

1.58

.625
→
.850

.955
E[X] = (1) (.1) + (2) (.5) + (3) (.2) + (4) (.2) = 2.5
= (1 – 2.5)2 (.1) + (2 – 2.5)2 (.5) + (3 – 2.5)2 (.2) + (4 – 2.5)2 (.2) = .850
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MC Qu. 99 Consider the experiment of tossing a fair co…
Consider the experiment of tossing a fair coin three times and observing the number of heads that result (X = number of heads).
Determine the expected number of heads.

1.1

1.5

1.0

2.0

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MC Qu. 100 Consider the experiment of tossing a fair co…
Consider the experiment of tossing a fair coin three times and observing the number of heads that result (X = number of heads).
What is the variance for this distribution?
→
0.75

0.87

1.22

1.5

44.
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MC Qu. 102 Consider the experiment of tossing a fair co…
Consider the experiment of tossing a fair coin three times and observing the number of heads that result (X = number of heads).
If you were asked to play a game in which you tossed a fair coin three times and were given $2 for every head you threw, how much would you expect to win on average?

$6
→
$3

$9

$2

46.
award:
3 out of
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MC Qu. 104 According to data from the state blood progr…
According to data from the state blood program, 40% of all individuals have group A blood. If six (6) individuals give blood, find the probability that None of the individuals has group A blood?

.0467

.4000

.0041

.0410
View Hint #1
47.
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3 out of
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MC Qu. 105 According to data from the state blood progr…
According to data from the state blood program, 40% of all individuals have group A blood. If six (6) individuals give blood, find the probability that Exactly three of the individuals has group A blood?

.4000

.2765

.5875

.0041
48.
award:
3 out of
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MC Qu. 106 According to data from the state blood progr…
According to data from the state blood program, 40% of all individuals have group A blood. If six (6) individuals give blood, find the probability that At least 3 of the individuals have group A blood.

.4557

.8208

.1792

.5443
P(x ≥ 3) = P(x = 3) + p(x = 4) + p(x = 5) + p(x = 6) = .4557
53.
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0 out of
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MC Qu. 113 An important part of the customer service re…
An important part of the customer service responsibilities of a cable company relates to the speed with which trouble in service can be repaired. Historically, the data show that the likelihood is 0.75 that troubles in a residential service can be repaired on the same day. For the first five troubles reported on a given day, what is the probability that fewer than two troubles will be repaired on the same day?

.0010

.0146
→
.0156

.6328
P(x < 2) = P(x = 0) + P(x = 1) = .0156
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MC Qu. 116 The Post Office has established a record in …
The Post Office has established a record in a major Midwestern city for delivering 90% of its local mail the next working day. If you mail eight local letters, what is the probability that all of them will be delivered the next day.

1.0

.5695
→
.4305

.8131
P(x = 8) = .4305
57.
award:
3 out of
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MC Qu. 117 The Post Office has established a record in …
The Post Office has established a record in a major Midwestern city for delivering 90% of its local mail the next working day. Of the eight, what is the average number you expect to be delivered the next day?

4.0

2.7

3.6

7.2
= np = (8) (.9) = 7.2
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MC Qu. 118 The Post Office has established a record in …
The Post Office has established a record in a major Midwestern city for delivering 90% of its local mail the next working day. Calculate the standard deviation of the number delivered when 8 local letters are mailed.

.72
→
.85

2.83

2.68
Σ = = = = .85
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MC Qu. 124 A large disaster cleaning company estimates …
A large disaster cleaning company estimates that 30% of the jobs it bids on are finished within the bid time. Looking at a random sample of 8 jobs that is has contracted calculate the mean number of jobs completed within the bid time.

2.0

5.6

4.0

2.4
= np = 8(.3) = 2.4
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MC Qu. 125 A large disaster cleaning company estimates …
A large disaster cleaning company estimates that 30% of the jobs it bids on are finished within the bid time. Looking at a random sample of 8 jobs that is has contracted find the probability that x (number of jobs finished on time) is within one standard deviation of the mean.
→
.5506

.6867

.8844

.7483
σ = √npq = 1.3. P(µ+/-σ) = P(2.4+/-1.3) = P(1.1≤X≤3.7) = P(2≤X≤3) = 0.2965+0.2541 = 0.5506

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July 1, 2023

51) The figure above illustrates a small country's production possibilities frontier. Moving from point A to point B, the per unit opportunity cost of a VCR is ________ per VCR.

A) 2 computers

B) 4/3 of a computer

C) 100 computers

D) 1/2 of a computer

E) 1 VCR

52) The figure above illustrates a small country's production possibilities frontier. Moving from point C to point B, the per unit opportunity cost of computers is ________ per computer.

A) 4 VCRs

B) 5/4 of a VCR

C) 4/5 of a VCR

D) 1/4 of a VCR

E) 1 computer

53) The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to

A) decrease SUV production by 1 million.

B) decrease SUV production by 3 million.

C) decrease SUV production by 4 million.

D) decrease compact car production by 3 million.

E) acquire more resources and/or more advanced technology.

54) The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to incur an opportunity cost of

A) 1 million SUVs.

B) 3 million SUVs.

C) 4 million SUVs.

D) 3 million compact cars.

E) 0 because the gain in compact cars exceeds the loss in SUVs.

55) The figure above shows the production possibilities frontier for a country. How does the opportunity cost of compact cars forgone per SUV gained moving from point C to point B compare with the movement from point B to point A?

A) The opportunity cost of moving from point C to point B is greater than the movement from point B to point A.

B) The opportunity cost of moving from point C to point B is the same as the movement from point B to point A.

C) The opportunity cost of moving from point C to point B is less than the movement from point B to point A.

D) The opportunity costs cannot be compared because the units of moving from point C to point B differ from the units of moving from point B to point A.

E) More information is needed to determine how the two opportunity costs compare.

56) Once you find the opportunity cost of producing one unit of a good, to find the opportunity cost of producing the other good, you must

A) take the inverse.

B) multiply by the total amount produced of the second good.

C) divide by the total amount produced of the second good.

D) do nothing because the opportunity cost for the first good is the same as the opportunity cost for the second good.

E) None of the answers is correct.

57) While moving on the production possibilities frontier, if the opportunity cost of producing one good is 1/2, the opportunity cost of producing the other good (in the same range) is

A) 1/2.

B) 1/4.

C) 2.

D) 4.

E) an amount that cannot be calculated without more information.

58) The opportunity cost of producing more of one good on a production possibilities frontier is

A) a dollar amount.

B) a ratio of quantities.

C) a ratio of prices.

D) equal to the area inside the production possibilities frontier.

E) a theoretical concept which cannot be measured.

59) The opportunity cost of one more slice of pizza in terms of sodas is the

A) number of pizza slices we have to give up in order to get one extra soda.

B) number of sodas we have to give up in order to get one extra pizza slice.

C) total number of sodas that we have divided by the total number of pizza slices that we have.

D) total number of pizza slices that we have divided by the total number of sodas that we have.

E) price of a pizza slice minus the price of a soda.

60) Moving between two points on a PPF, a country gains 6 automobiles and forgoes 3 trucks. The opportunity cost of 1 automobile is

A) 3 trucks.

B) 6 automobiles - 3 trucks.

C) 2 trucks.

D) 1/2 of a truck.

E) 1 automobile.

61) Moving between two points on a PPF, a country gains 8 desktop computers and forgoes 4 laptop computers. The opportunity cost of 1 desktop computer is

A) 4 laptops.

B) 8 desktops.

C) 1 desktop.

D) 2 laptops.

E) 1/2 of a laptop.

62) A country produces only cans of soup and ink pens. If the country produces on its bowed outward PPF and increases the production of cans of soup, the opportunity cost of additional

A) cans of soup is increasing.

B) cans of soup is decreasing.

C) cans of soup remains unchanged.

D) ink pens is increasing.

E) More information is needed to determine what happens to the opportunity cost.

63) Moving along a country's PPF, a reason opportunity costs increase is that

A) unemployment decreases as a country produces more and more of one good.

B) unemployment increases as a country produces more and more of one good.

C) technology declines as a country produces more and more of one good.

D) some resources are better suited for producing one good rather than the other.

E) technology must advance in order to produce more and more of one good.

64) Increasing opportunity cost exists

A) in the real world.

B) as long as there is high unemployment.

C) only in theory but not in real life.

D) for a country but not for an individual.

E) inside the PPF but not on the PPF.

July 1, 2023

51) The figure above illustrates a small country's production possibilities frontier. Moving from point A to point B, the per unit opportunity cost of a VCR is ________ per VCR.

A) 2 computers

B) 4/3 of a computer

C) 100 computers

D) 1/2 of a computer

E) 1 VCR

52) The figure above illustrates a small country's production possibilities frontier. Moving from point C to point B, the per unit opportunity cost of computers is ________ per computer.

A) 4 VCRs

B) 5/4 of a VCR

C) 4/5 of a VCR

D) 1/4 of a VCR

E) 1 computer

53) The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to

A) decrease SUV production by 1 million.

B) decrease SUV production by 3 million.

C) decrease SUV production by 4 million.

D) decrease compact car production by 3 million.

E) acquire more resources and/or more advanced technology.

A) 1 million SUVs.

B) 3 million SUVs.

C) 4 million SUVs.

D) 3 million compact cars.

E) 0 because the gain in compact cars exceeds the loss in SUVs.

A) The opportunity cost of moving from point C to point B is greater than the movement from point B to point A.

B) The opportunity cost of moving from point C to point B is the same as the movement from point B to point A.

C) The opportunity cost of moving from point C to point B is less than the movement from point B to point A.

D) The opportunity costs cannot be compared because the units of moving from point C to point B differ from the units of moving from point B to point A.

E) More information is needed to determine how the two opportunity costs compare.

56) Once you find the opportunity cost of producing one unit of a good, to find the opportunity cost of producing the other good, you must

A) take the inverse.

B) multiply by the total amount produced of the second good.

C) divide by the total amount produced of the second good.

D) do nothing because the opportunity cost for the first good is the same as the opportunity cost for the second good.

E) None of the answers is correct.

57) While moving on the production possibilities frontier, if the opportunity cost of producing one good is 1/2, the opportunity cost of producing the other good (in the same range) is

A) 1/2.

B) 1/4.

C) 2.

D) 4.

E) an amount that cannot be calculated without more information.

58) The opportunity cost of producing more of one good on a production possibilities frontier is

A) a dollar amount.

B) a ratio of quantities.

C) a ratio of prices.

D) equal to the area inside the production possibilities frontier.

E) a theoretical concept which cannot be measured.

59) The opportunity cost of one more slice of pizza in terms of sodas is the

A) number of pizza slices we have to give up in order to get one extra soda.

B) number of sodas we have to give up in order to get one extra pizza slice.

C) total number of sodas that we have divided by the total number of pizza slices that we have.

D) total number of pizza slices that we have divided by the total number of sodas that we have.

E) price of a pizza slice minus the price of a soda.

60) Moving between two points on a PPF, a country gains 6 automobiles and forgoes 3 trucks. The opportunity cost of 1 automobile is

A) 3 trucks.

B) 6 automobiles - 3 trucks.

C) 2 trucks.

D) 1/2 of a truck.

E) 1 automobile.

61) Moving between two points on a PPF, a country gains 8 desktop computers and forgoes 4 laptop computers. The opportunity cost of 1 desktop computer is

A) 4 laptops.

B) 8 desktops.

C) 1 desktop.

D) 2 laptops.

E) 1/2 of a laptop.

62) A country produces only cans of soup and ink pens. If the country produces on its bowed outward PPF and increases the production of cans of soup, the opportunity cost of additional

A) cans of soup is increasing.

B) cans of soup is decreasing.

C) cans of soup remains unchanged.

D) ink pens is increasing.

E) More information is needed to determine what happens to the opportunity cost.

63) Moving along a country's PPF, a reason opportunity costs increase is that

A) unemployment decreases as a country produces more and more of one good.

B) unemployment increases as a country produces more and more of one good.

C) technology declines as a country produces more and more of one good.

D) some resources are better suited for producing one good rather than the other.

E) technology must advance in order to produce more and more of one good.

64) Increasing opportunity cost exists

A) in the real world.

B) as long as there is high unemployment.

C) only in theory but not in real life.

D) for a country but not for an individual.

E) inside the PPF but not on the PPF.

July 1, 2023

51) The figure above illustrates a small country's production possibilities frontier. Moving from point A to point B, the per unit opportunity cost of a VCR is ________ per VCR.

A) 2 computers

B) 4/3 of a computer

C) 100 computers

D) 1/2 of a computer

E) 1 VCR

52) The figure above illustrates a small country's production possibilities frontier. Moving from point C to point B, the per unit opportunity cost of computers is ________ per computer.

A) 4 VCRs

B) 5/4 of a VCR

C) 4/5 of a VCR

D) 1/4 of a VCR

E) 1 computer

53) The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to

A) decrease SUV production by 1 million.

B) decrease SUV production by 3 million.

C) decrease SUV production by 4 million.

D) decrease compact car production by 3 million.

E) acquire more resources and/or more advanced technology.

A) 1 million SUVs.

B) 3 million SUVs.

C) 4 million SUVs.

D) 3 million compact cars.

E) 0 because the gain in compact cars exceeds the loss in SUVs.

A) The opportunity cost of moving from point C to point B is greater than the movement from point B to point A.

B) The opportunity cost of moving from point C to point B is the same as the movement from point B to point A.

C) The opportunity cost of moving from point C to point B is less than the movement from point B to point A.

D) The opportunity costs cannot be compared because the units of moving from point C to point B differ from the units of moving from point B to point A.

E) More information is needed to determine how the two opportunity costs compare.

56) Once you find the opportunity cost of producing one unit of a good, to find the opportunity cost of producing the other good, you must

A) take the inverse.

B) multiply by the total amount produced of the second good.

C) divide by the total amount produced of the second good.

D) do nothing because the opportunity cost for the first good is the same as the opportunity cost for the second good.

E) None of the answers is correct.

57) While moving on the production possibilities frontier, if the opportunity cost of producing one good is 1/2, the opportunity cost of producing the other good (in the same range) is

A) 1/2.

B) 1/4.

C) 2.

D) 4.

E) an amount that cannot be calculated without more information.

58) The opportunity cost of producing more of one good on a production possibilities frontier is

A) a dollar amount.

B) a ratio of quantities.

C) a ratio of prices.

D) equal to the area inside the production possibilities frontier.

E) a theoretical concept which cannot be measured.

59) The opportunity cost of one more slice of pizza in terms of sodas is the

A) number of pizza slices we have to give up in order to get one extra soda.

B) number of sodas we have to give up in order to get one extra pizza slice.

C) total number of sodas that we have divided by the total number of pizza slices that we have.

D) total number of pizza slices that we have divided by the total number of sodas that we have.

E) price of a pizza slice minus the price of a soda.

60) Moving between two points on a PPF, a country gains 6 automobiles and forgoes 3 trucks. The opportunity cost of 1 automobile is

A) 3 trucks.

B) 6 automobiles - 3 trucks.

C) 2 trucks.

D) 1/2 of a truck.

E) 1 automobile.

61) Moving between two points on a PPF, a country gains 8 desktop computers and forgoes 4 laptop computers. The opportunity cost of 1 desktop computer is

A) 4 laptops.

B) 8 desktops.

C) 1 desktop.

D) 2 laptops.

E) 1/2 of a laptop.

62) A country produces only cans of soup and ink pens. If the country produces on its bowed outward PPF and increases the production of cans of soup, the opportunity cost of additional

A) cans of soup is increasing.

B) cans of soup is decreasing.

C) cans of soup remains unchanged.

D) ink pens is increasing.

E) More information is needed to determine what happens to the opportunity cost.

63) Moving along a country's PPF, a reason opportunity costs increase is that

A) unemployment decreases as a country produces more and more of one good.

B) unemployment increases as a country produces more and more of one good.

C) technology declines as a country produces more and more of one good.

D) some resources are better suited for producing one good rather than the other.

E) technology must advance in order to produce more and more of one good.

64) Increasing opportunity cost exists

A) in the real world.

B) as long as there is high unemployment.

C) only in theory but not in real life.

D) for a country but not for an individual.

E) inside the PPF but not on the PPF.

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