Question |
1. If you roll a pair of standard dice, what’s the probability that the total will be an odd number less than six? a. 0.083 b. 0.167 c. 0.25 d. 0.5 2. You are taking a multiple-choice test that awards you one point for a correct answer and penalizes you ¼ point for an incorrect answer. If you have to make a random guess and there are four possible answers, what is the expected value of guessing? a. 1 point b. 0.25 points c. -0.25 points d. -1 point 3. Your company has a customer list that includes 200 people. Of those 200, your market research indicates that 140 of them hate receiving offers whereas the remainder really likes them. If you send a mailer to one customer at random, what’s the probability that he or she will value receiving the 0.3 b. 0.6 c. 0.70 d. 1.4 4. You’ve just decided to add a new line to your manufacturing plant. Compute the expected loss/profit from the line addition if you estimate the following: There’s a 70% chance that profit will increase by $100,000. There’s a 20% chance that profit will remain the same. There’s a 10% chance that profit will decrease by $15,000. a. Gain of $100,000 b. Gain of $71,500 c. Loss of $15,000 d. Gain of $68,500 5. You have two types of buyers for your product. The first type values your product at $10; the second values it at $6. Forty percent of buyers are of the first type ($10 value); 60% are of the second type ($6 value). What price maximizes your expected profit contribution? a. $10 b. $6 c. $7.60 d. $8 |