Strayer University, Washington ACC 557 Quantitative Methods Week 3: Choosing Fitting Distributions Quiz

Week 3: Choosing Fitting Distributions Quiz 1. A sports team named Philadelphia Streets has a probability of (2/3) for winning each game against their division rivals Hockeytown. They play 12 games against each other d ...

Week 3: Choosing Fitting Distributions Quiz 1. A sports team named Philadelphia Streets has a probability of (2/3) for winning each game against their division rivals Hockeytown. They play 12 games against each other during the season. Assume that the outcome of any particular game is independent from an outcome of any other game. Let X be the random variable that stands for the number of wins that Philadelphia Streets will have in those 12 games. What is the expected value of X? 6 10 8 12 4 2. Re-examine the medical drug success example in the videos. Recall that the number of the successes is distributed binomially (i.e., according to a binomial distribution). Based on the definition of the mode, what is the mode of the distribution of successes? (Recall that the mode is the most likely value that a random variable can take). 12 4 10 8 6 3. The number of shares of a stock traded during a day for a firm is approximated by a random variable that is normally distributed with mean 3192 and standard deviation 1181. What is the probability than the number of shares traded is less than or equal to 4200? 0.002 0.80 0.0002 0.50 0.9998 0.20 4. The number of shares of a stock traded during a day for a firm is approximated by a random variable that is normally distributed with mean 3192 and standard deviation 1181. Calculate the pdf value at x=3200. 0.0003 0.9997 0.202 0.502 0.801 0.003 5. The forecast monthly revenues for a firm are modeled using a random variable that is distributed according to a normal distribution with mean $850,000 and standard deviation $165,000. What is median value of this distribution, in $? 1,015,000 850,000 1,180,000 200,000 685,000 520,000 6. The forecast monthly revenues for a firm are modeled using a random variable that is distributed according to a normal distribution with mean $850,000 and standard deviation $165,000. What is the probability that the revenues will be less than $700,000? Choose the closest numerical answer. 0.27 0.10 0.90 0.18 0.73 0.82 0.50 7. The forecast monthly revenues for a firm are modeled using a random variable that is distributed according to a normal distribution with mean $850,000 and standard deviation $165,000. What is the probability that revenues will exceed 1 million dollars? Choose the closest answer. 0.73 0.82 0.50 0.90 0.18 0.27 0.10 8. A financial advisor at a financial consulting firm spends time with his investing clients throughout the year. Based on the historical data, he finds that the consulting time T spent with a client can be modeled as a continuous, uniformly distributed random variable, with the minimum value of 50 minutes and the maximum value of 183 minutes. What is the pdf value of this distribution at T=67 minutes? 0.47 0.33 0.0075 0.67 0.9825 0.53 9. A financial advisor at a financial consulting firm spends time with his investing clients throughout the year. Based on the historical data, he finds that the consulting time T spent with a client can be modeled as a continuous, uniformly distributed random variable, with the minimum value of 50 minutes and the maximum value of 183 minutes. What is the probability that his consulting time with an investor client will not exceed 2 hours (i.e., 120 minutes)? Choose the closest answer. 0.9825 0.53 0.33 0.47 0.0075 0.67 10. Suppose you are working on a project based on some complex data from your firm. You have broken down the 1344 data points that you have into 35 buckets or bins. You are now testing the goodness of fit, using a chi-square test for a distribution that is characterized by 3 parameters. What is the number of degrees of freedom associated with your chi-square test? 2 31 1344 1340 35 7 3 32