additional 4 - review issues

Question 1

Geometric Mean : if you are given a rate what should you remember

Answer 1

that this is a percentage, not the growth factor and not the annual growth rate. You need 1 plus or 1- the % to get the growth factor

Question 2

Geometric Mean: Which is the order

Answer 2

1. Rate of return % , Growth Factor, Growth rate

Question 3

How do you calculate growth rate

Answer 3

growth factor - 1, this is a percentage

Question 4

How do you know what is the WI for the weighted mean

Answer 4

in GPA, its how many credits not the weight of the letters or If it is quality assessment and business school deans, use the # of business school deans for that category as the Wi (weight)

Question 5

what is the mean growth rate if you invest in an asset and it goes down from 10,000 to 3,000 in the past 3 years

Answer 5

10,000 / 3,000 =3.33
then 3 square root of 3.33
the growth factor is 4.479910447
growth rate is 4.479910447 -1 = 3.4799

Not sure this is correct

Question 6

What is the mean annual growth rate if you have an asset that is worth 10,000 5 years ago but now is worth 15,000

Answer 6

15,000 / 10,000 = 1.50
5 square root of 1.5 = 1.0845
Growth rate = 1.0845 - 1 =0.0845 or 8.45%

Question 7

How do you calculate the mean if you have to use a midpoint

Answer 7

midpoint x frequency for the total

divide it by the total of the frequency

Question 8

Can variance be negative?

Answer 8

yes, b/c it is the square root

ie, negative x negative = positive

Question 9

What is the sum of the deviations from their mean

Answer 9

0

Question 10

What is 6 Choose 3 look like in factorial

Answer 10

6! / 3!3!

Question 11

for prob a, prob b,etc what do you use to find prob at least 1

Answer 11

1 - P(none) ?

Question 12

for prob a, prob b,etc what do you use to find prob at both

Answer 12

P(ANB) - multiply

Question 13

Probability question: Probability you do not get either

Answer 13

1-P(AUB)

1 minus the prob you get both

P(AUB) = P A or B or Both

Question 14

You get B but not A

Answer 14

P(Ac)
P(B)

P(Ac) x P(B)

Question 15

If A and B are mutually exclusive, then P(ANB) is

Answer 15

0

Question 16

If A and B are mutually exclusive, then P(AUB)

Answer 16

P(A) + P(B)

Question 17

If A and B are mutually exclusive, then P(A|B)

Answer 17

0

Question 18

If A and B are mutually exclusive, then P(A|B)

Answer 18

0

Question 19

Prob of A or B

Answer 19

P(AuB)

Question 20

Prob of A or B

Answer 20

P(AuB)

Question 21

if events A and B are mutually exclusive, If event A has occurred then the prob of B happening is

Answer 21

0

Question 22

if you are given the mean but not the prob, what distribution is this likely

Answer 22

poisson

Question 23

Hints that it is a possion distribution

Answer 23

1. give you the mean and not the probability
2. occurrence
3. interval / time etc

Question 24

What are the types of Bivariate distributions

Answer 24

1. Binomial
2. Poisson
3. Hypergeometric

Question 25

what does bivariate mean

Answer 25

2 variables

Question 26

A contractor for CCR submitted a bid for a project. The Subcontractor felt at first they had a 50% chance of getting the job. But, CCR asked for more info on the bid. In the past, they noticed that for 75% of the successful bids CCR asked for additional info and that 40% were unsuccessful. 1. what is the prior prob? 2. what is the conditional prob of a request for more info given that the bid will be successful? 3. Compute the posterior probability that the bid will be successful given a request for additional info.

Answer 26

1. 50% 2. P(B|S) = .75 3. P(B|S) = (.5*.75)/ (.5*.75)+(.5*.4)