Dakota State University
BUS 320 Business Statistics I
Fall 2002
James A. Janke
Reading Assignments
Chapter 4: All Chapter 5: All except section 5.6
Problem Assignments
Chapter 4: 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, 18,
19, 20, 22, 23, 24, 25, 26, 30, 31, 32, 33, 36, 38, 39,
40, 45,48, 54
Chapter 5: 1, 2, 3, 6, 7, 8, 9, 10, 15, 16, 25, 27, 28, 29, 30, 31,
34, 38, 40, 41, 43,
Objectives
I = would be on an open-book Part I of exams
Part I is handed in before you begin work on the closed-book Part II
* = will definitely be on exam, either Part I or Part II
Chapter 4: Introduction to Probability
1. Define probability.
2. Define, give or recognize examples of, and distinguish between:
a) an experiment
b) an outcome
c) an event
d) the sample space
e) a sample point
* 3. Use proper notation for probabilities.
4. State the possible range for probabilities.
5. Explain what is meant by the null event.
6. State the probability of:
a) an impossible event
b) a certain event
7. State the sum of the probabilities of all events in a sample
space.
8. Explain what is meant by a priori classical probability (prior
probability, classical probability).
9. Explain what is meant by empirical classical probability
(relative frequency probability, posterior probability).
10. Explain what is meant by subjective probability.
11. Explain what is meant by the following terms:
a) simple event
b) complement of an event
c) joint event
d) mutually exclusive events
e) collectively exhaustive events
f) independent events
12. State the law of large numbers.
I*13. Use the counting rules to calculate the number of possible
outcomes for processes which produce large numbers of
outcomes.
I*14. Use the counting rules to calculate the probability of stated
events.
*15. Construct a tree diagram for any given situation and calculate
the probability of sequences in the diagram, given the
probabilities of the component steps.
16. Interpret a tree diagram for any given situation, including the
calculation of probabilities of outcomes of sequences.
17. Draw a Venn diagram from given data.
18. Interpret a given Venn diagram.
19. Explain what is meant by
a) the union of two events
b) the intersection of two events
and use proper notation to designate them.
20. Explain what is meant by conditional probability.
21. Use proper notation for conditional probability.
I 22. Calculate conditional probabilities.
*23. Construct a prior probability contingency table from a given
situation (like a deck of cards).
*24. Construct a relative frequency probability contingency table
from given data (by first constructing a prior probability
contingency table).
*25. Calculate the probability of a simple, joint, or marginal event
using contingency and/or probability tables, either those given
to you or those which you create from the raw data.
26. State the addition rule for P(A or B) for:
a) events that are mutually exclusive
b) events that are not mutually exclusive
27. State the multiplication rule for P(A and B) for:
a) events that are independent
b) events that are not independent
*28. Apply the addition rule and the multiplication rule.
*29. Perform calculations using Bayes' theorem, given a tree diagram
and/or a contingency table for the situation (though you could
also use formulas).
Chapter 5: Discrete Probability Distributions
Discrete Probability Distributions
30. Define random variable.
31. Distinguish between discrete random variables and continuous
random variables.
32. State whether discrete random variables are measured or counted.
33. State whether continuous random variables are measured or
counted.
34. State what kind of numbers (whole or fractional) are allowable
for discrete random variables and for continuous random
variables.
35. Give or recognize examples of discrete and continuous variables.
36. State whether probability distributions represent samples of
populations.
37. Use proper notation for probability distributions and their
characteristics.
38. Construct discrete probability distributions from theoretical (a
priori) outcomes or from empirical outcomes.
39. Give a bar graph for any given discrete probability distribution.
I 40. Calculate the mean/expected value of a discrete probability
distribution.
41. Explain why the expected value of a discrete probability
distribution may not be literally meaningful.
I 42. Calculate the variance and standard deviation of a discrete
probability distribution.
Binomial Probability Distributions
*43. State the assumptions for the binomial distribution with regard
to:
a) number and kind of trials
b) possible outcomes
c) relationship of one trial to other trials
d) the variability of the probability of success throughout the
trials
*44. State the following properties for the binomial distribution:
a) what is meant by a success
b) possible values of the number of successes
c) the relationship between infinite or finite populations and
whether selection is done with replacement or without
45. Give or recognize examples of binomial experiments.
46. State whether the binomial probability distribution changes shape
for different combinations of n and p.
47. State the relationship between symmetry or skewness of the
binomial distribution and the value of p.
48. State the correlation between the size of n and the skewness of
the binomial probability distribution.
49. Create a tree diagram for a binomial experiment.
50. Calculate probabilities from a tree diagram for a binomial
experiment.
I 51. Calculate binomial probabilities using the binomial probability
function.
*52. Use binomial probability tables to approximate single or
cumulative binomial probabilities.
53. State what the sum of the probabilities in any column in a
binomial table must be for a given value of n.
I 54. Calculate the mean of a binomial probability distribution.
I 55. Calculate the variance and standard deviation of a binomial
probability distribution.
Poisson Probability Distributions
*56. Describe the Poisson distribution with regard to:
a) number of trials
b) frequency of events described
c) the possible range of occurrences in an interval
d) the variability of the expected number of occurrences in
an interval throughout an experiment
e) how intervals can be measured
f) typical values of average occurrences
57. Give or recognize some examples of Poisson-distributed phenomena.
58. Explain what µ refers to in Poisson distributions.
59. State
a) whether the value of µ is typically a whole number
b) whether µ can often be observed in practice
I 60. Calculate Poisson probabilities using the Poisson probability
function.
I 61. Calculate the mean, variance, and standard deviation of a Poisson
distribution.
62. State the relationship between the size of µ and the symmetry or
skewness of the Poisson distribution.
*63. Use Poisson probability tables to approximate probabilities.
64. State what the sum of the probabilities in any column in a
Poisson table must be for a given value of µ.
[Unit Two Study Guide in Word format]
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URL: http://courses.dsu.edu/bus320/janke/fall2002/guides/b320unt2.htm
Last update: October 24, 2002