## Managerial Statistics International Edition 9th Edition by Gerald Keller – Test Bank

CHAPTER 7 SECTION 1: RANDOM VARIABLES AND DISCRETE PROBABILITY DISTRIBUTIONS

TRUE/FALSE

1. The time required to drive from New York to New Mexico is a discrete random variable.

ANS: F PTS: 1 REF: SECTION 7.1

NAT: Analytic; Probability Distributions

2. A random variable is a function or rule that assigns a number to each outcome of an experiment.

ANS: T PTS: 1 REF: SECTION 7.1

NAT: Analytic; Probability Distributions

3. The number of home insurance policy holders is an example of a discrete random variable

ANS: T PTS: 1 REF: SECTION 7.1

NAT: Analytic; Probability Distributions

4. The mean of a discrete probability distribution for X is the sum of all possible values of X, divided by the number of possible values of X.

ANS: F PTS: 1 REF: SECTION 7.1

NAT: Analytic; Probability Distributions

5. The length of time for which an apartment in a large complex remains vacant is a discrete random variable.

ANS: F PTS: 1 REF: SECTION 7.1

NAT: Analytic; Probability Distributions

6. The number of homeless people in Boston is an example of a discrete random variable.

ANS: T PTS: 1 REF: SECTION 7.1

NAT: Analytic; Probability Distributions

7. A continuous variable may take on any value within its relevant range even though the measurement device may not be precise enough to record it.

ANS: T PTS: 1 REF: SECTION 7.1

NAT: Analytic; Probability Distributions

8. Given that X is a discrete random variable, then the laws of expected value and variance can be applied to show that E(X + 5) = E(X) + 5, and V(X + 5) = V(X) + 25.

ANS: F PTS: 1 REF: SECTION 7.1

NAT: Analytic; Probability Distributions

9. A table, formula, or graph that shows all possible values a random variable can assume, together with their associated probabilities, is referred to as discrete probability distribution.

ANS: T PTS: 1 REF: SECTION 7.1

NAT: Analytic; Probability Distributions

10. Faculty rank (professor, associate professor, assistant professor, and lecturer) is an example of a discrete random variable.

ANS: F PTS: 1 REF: SECTION 7.1

NAT: Analytic; Probability Distributions

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