Chapter 11 Study Guide

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Introduction to Management Science, 10e (Taylor)
Chapter 11 Probability and Statistics

1) Deterministic techniques assume that no uncertainty exists in model parameters. Answer: TRUE
Diff: 1Page Ref: 489
Main Heading: Types of Probability
Key words: deterministic techniques

2) Probabilistic techniques assume that no uncertainty exists in model parameters. Answer: FALSE
Diff: 1Page Ref: 489
Main Heading: Types of Probability
Key words: probabilistic techniques

3) Objective probabilities that can be stated prior to the occurrence of an event are classical or a priori. Answer: TRUE
Diff: 2Page Ref: 489
Main Heading: Types of Probability
Key words: objective probabilities, classical probabilities

4) Objective probabilities that are stated after the outcomes of an event have been observed are relative frequencies. Answer: TRUE
Diff: 2Page Ref: 489
Main Heading: Types of Probability
Key words: relative frequencies

5) Relative frequency is the more widely used definition of objective probability. Answer: TRUE
Diff: 1Page Ref: 490
Main Heading: Types of Probability
Key words: relative frequencies

6) Subjective probability is an estimate based on personal belief, experience, or knowledge of a situation. Answer: TRUE
Diff: 2Page Ref: 490
Main Heading: Types of Probability
Key words: subjective probability

7) An experiment is an activity that results in one of several possible outcomes. Answer: TRUE
Diff: 1Page Ref: 491
Main Heading: Fundamentals of Probability
Key words: experiment

8) The events in an experiment are mutually exclusive if only one can occur at a time. Answer: TRUE
Diff: 1Page Ref: 491
Main Heading: Fundamentals of Probability
Key words: mutually exclusive events

9) In a given experiment, the probabilities of all mutually exclusive events sum to one. Answer: TRUE
Diff: 1Page Ref: 491
Main Heading: Fundamentals of Probability
Key words: mutually exclusive events, rules of probability

10) A set of events is collectively exhaustive when it includes all the events that can occur in an experiment. Answer: TRUE
Diff: 2Page Ref: 492
Main Heading: Fundamentals of Probability
Key words: collectively exhaustive events

11) A marginal probability is the probability of a single event occurring. Answer: TRUE
Diff: 1Page Ref: 492
Main Heading: Fundamentals of Probability
Key words: marginal probability

12) A Venn diagram visually displays mutually exclusive and non-mutually exclusive events. Answer: TRUE
Diff: 2Page Ref: 492
Main Heading: Fundamentals of Probability
Key words: Venn diagram

13) A joint probability is the probability that two or more events that are mutually exclusive can occur simultaneously. Answer: FALSE
Diff: 2Page Ref: 493
Main Heading: Fundamentals of Probability
Key words: joint probability

14) A conditional probability is the probability that an event occurs given that another event has already occurred. Answer: TRUE
Diff: 1Page Ref: 495
Main Heading: Fundamentals of Probability
Key words: conditional probability

15) Conditional probabilities are shown in Venn diagrams.
Answer: FALSE
Diff: 1Page Ref: 495
Main Heading: Fundamentals of Probability
Key words: conditional probability

16) Probability trees are used only to compute conditional probabilities. Answer: FALSE
Diff: 2Page Ref: 496
Main Heading: Fundamentals of Probability
Key words: probability tree, conditional probability

17) A succession of events that does not affect other events is independent. Answer: TRUE
Diff: 1Page Ref: 495
Main Heading: Statistical Independence and Dependence
Key words: independence

18) A binomial probability distribution indicates the probability of r successes in n trials. Answer: TRUE
Diff: 2Page Ref: 497
Main Heading: Statistical Independence and Dependence
Key words: binomial probability distribution

19) The chi-square test is a statistical...
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