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University of Hartford
Economics Department
Final Exam
QNT 130
Methods in Business
Dr. Rao Singamsetti
May 8, 1999
Answer all questions. Maximum Score – 100 points. All questions are equally
important.
1.
The spread in the annual prices of stocks selling for under $10 and the spread in
prices of those selling for over $60 are to be compared. The mean price of the
stocks selling for under $10 is $5.25 and the standard deviation $1.05. The mean
price of those stocks selling for over $60.00 is $92.50 and the standard deviation
$55.5.
a) Why should the coefficient of variation be used to compare the dispersion
in the prices?
b) Compute the coefficients of variation. What is your conclusion?
2.
A survey of 100 undergraduate students in the school of business at Northern
University revealed the following information regarding the gender and majors of
the students.
Gender
Male
Female
Total
Major
Accounting
20
20
40
Management
30
10
40
Eco/Finance
10
10
20
Total
60
40
100
a) What is the probability of selecting a female student?
b) What is the probability of selecting an accounting or management major?
c) What is the probability of selecting a female or an accounting major? Which
rule of addition did you apply?
d) What is the probability of selecting an accounting major, given that the person
selected is a male?
e) Suppose two students are selected at random to attend a lunch with the
president of the university. What is the probability that both of those selected
are accounting majors?
3.
You are asked to match three songs with the performers who made those songs
famous. If you guess, the probability distribution for the number of correct
matches is:
Probability
0.333
0.500
0.000
0.167
0
1
2
3
What is the probability you get:
a) Exactly one correct?
b) At least one correct?
c) Exactly 2 correct?
d) Compute the mean.
e) Compute the variance and standard deviation.
4.
A telemarketer makes six phone calls per hours and is able to make a sale on 40%
of these contacts. During the next two hours, find:
a) The probability of making exactly 4 sales.
b) The probability of making no sales.
c) The probability of making exactly 2 sales
d) The mean number of sales in the two-hour period
e) The variance and standard deviation in the number of sales during the two
hour period.
5.
Andrews and associates specialize in corporate law. They charge $100 an hour for
researching a case, $75 an hour for consultations, and $200 an hour for writing a
brief. Last week one of the associates spent 10 hours consulting with her client, 10
hours researching the case, and 20 hours writing the brief. What was the weighted
mean hourly charge for her legal services? Show your calculations.