Which of the following is true in a normal distribution?
Answer(s): B
All the above holds for a normal distribution.
Events X and Y are mutually exclusive. P(X) = 0.15, P(Y) = 0.32. The probability of either X or Y occurring equals ________.
Answer(s): C
Note the relationship, P(X or Y) = P(X) + P(Y) - P(X and Y) Also remember that for mutually exclusive events, by definition, P(X and Y) = 0. Therefore, P(X or Y) = 0.15 + 0.32 = 0.47.
What is the general form of the regression equation?
The regression is written as Y' = a + bX. The letter "a" is the Y intercept and b is the slope of the line.
Which of the following is true regarding probability?
Answer(s): A
III only is true: 0 <= P(E) <= 1: the probability of an event E is a number between 0 and 1, inclusive. A probability can equal 1 or 0; thus, statement I is false. Statement II would only be true if it read: The sum of the probabilities of any group of mutually exclusive and exhaustive events equals 1. Throwing a 6-sided die can lead to 6 different outcomes, each of which has probability of 1/6. However, If your group of mutually exclusive outcomes only included results 1 and 2, then the sum of those probabilities is not 1. Such a group would not be exhaustive because it excludes the outcomes 3, 4, 5, 6.
What annual interest rate, compounded quarterly, would cause a series of 30 quarterly deposits of $500 to accumulate to $25,000, if the first deposit is made three months from today?
Answer(s): D
The value returned by the calculator will be the periodic interest rate which must be multiplied by the number of periods per year to have the correct answer. On the BAII Plus, press 30 N, 0 PV, 500 PMT, 25000 +/- FV, CPT I/Y. Then press x 4 = to see the answer. On the HP12C, press 30 n, 0 PV, 500 PMT, 25000 CHS FV, i. Then press 4 x to see the answer. Make sure the BAII Plus has the P/Y value set to 1.
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