1. Elwin Osbourne, CIO at GFS, Inc., is studying employee use of GFS e-mail for non-business communications. A random sample of 200 e-mail messages was selected. Thirty of the messages were not business related. The 95% confidence interval for the population proportion is _________.
a.0.091 to 0.209
b. 0.108 to 0.192
c. 0.101 to 0.199
d. 0.153 to 0.247
2. The probability of selecting 3 defective items and 7 good items from a warehouse containing 10 defective and 50 good items would best be modeled with the _______.
a. hyperbinomial distribution
b. hypergeometric distribution
c. Poisson distribution
d. binomial distribution
3. Max Sandlin is exploring the characteristics of stock market investors. He found that sixty percent of all investors have a net worth exceeding $1,000,000; 20% of all investors use an online brokerage; and 10% of all investors a have net worth exceeding $1,000,000 and use an online brokerage. An investor is selected randomly, and E is the event "networth exceeds $1,000,000," and O is the event "uses an online brokerage." P (O U E) = _____________.
The solution answers multiple choice questions on confidence interval for the population proportion, probability distribution and probability calculation.