Chapter 3: 4 (page 168)
Compute each of the following:
a.
b.
c.
d.
e.
Short Answer
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Chapter 3: 4 (page 168)
Compute each of the following:
a.
b.
c.
d.
e.
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Get started for freeCharacteristics of a new product. The long-run success of a business depends on its ability to market products with superior characteristics that maximize consumer satisfaction and that give the firm a competitive advantage (Kotler & Keller, Marketing Management, 2015). Ten new products have been developed by a food-products firm. Market research has indicated that the 10 products have the characteristics described by the following Venn diagram:
On-the-job arrogance and task performance. Human Performance (Vol. 23, 2010) published the results of a study that found that arrogant workers are more likely to have poor performance ratings. Suppose that 15% of all full-time workers exhibit arrogant behaviors on the job and that 10% of all full-time workers will receive a poor performance rating. Also, assume that 5% of all full-time workers exhibit arrogant behaviors and receive a poor performance rating. Let A be the event that a full-time worker exhibits arrogant behavior. Let B be the event that a full-time worker will receive a poor performance rating.
a. Are the events A and B mutually exclusive? Explain.
b. Find P(B/A).
c. Are the events A and B independent? Explain.
Who prepares your tax return? As part of a study on income tax compliance (Behavioral Research and Accounting, January 2015), researchers sampled 270 adults at a shopping mall and asked each: “Who usually prepares your tax return?” Their answers (and frequency of responses) are shown in the table (p. 170). Use the information in the table to estimate the probability that a randomly selected adult uses a friend, relative, or professional to prepare his or her income tax return.
Table for Exercise 3.16
Response | Frequency |
You | 100 |
Your spouse | 16 |
Equally with spouse | 7 |
Friend or relative | 31 |
Professional help | 114 |
Not required to file | 2 |
TOTAL | 270 |
Source: S. Bhattacharjee, K. Moreno, and D. Salbador, “The Impact of Multiple Tax Returns on Tax Compliance Behavior,” Behavioral Research and Accounting, Vol. 27, No. 1, January 2015 (from Table 1).
Most likely coin-tossing sequence. In Parade Magazine’s (November 26, 2000) column “Ask Marilyn,” the following question was posed: “I have just tossed a [balanced] coin 10 times, and I ask you to guess which of the following three sequences was the result. One (and only one) of the sequences is genuine.”
(1) H HHHHHHHHH
(2) H H T T H T T H HH
(3) T TTTTTTTTT
Museum management. Refer to the Museum Management and Curatorship (June 2010) study of the criteria used to evaluate museum performance, Exercise 2.14 (p. 74). Recall that the managers of 30 leading museums of contemporary art were asked to provide the performance measure used most often. A summary of the results is reproduced in the table. Performance Measure Number of Museums Total visitors 8 Paying visitors 5 Big shows 6 Funds raised 7 Members 4
Performance Measure | Number of Museums |
Total visitors | 8 |
Paying visitors | 5 |
Big shows | 6 |
Funds raised | 7 |
Members | 4 |
a. If one of the 30 museums is selected at random, what is the probability that the museum uses total visitors or funds raised most often as a performance measure?
b. Consider two museums of contemporary art randomly selected from all such museums. Of interest is whether or not the museums use total visitors or funds raised most often as a performance measure. Use a tree diagram to aid in listing the sample points for this problem.
c. Assign reasonable probabilities to the sample points of part b.
d. Refer to parts b and c. Find the probability that both museums use total visitors or funds raised most often as a performance measure.
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