Seventy two percent of all observations fall within 1 standard deviation of the mean if the data is normally distributed Probability trees are used only to compute conditional probabilities. If two events are not mutually exclusive, then P(A or B) = P(A) + P(B) The maximin approach involves choosing the alternative with the highest or lowest payoff. Both maximin and minimin criteria are optimistic. The minimax regret criterion maximizes the minimum regret. The minimin criterion is optimistic. The chi-square test is a statistical test to see if an observed data fit a _________. The metropolitan airport commission is considering the establishment of limitations on noise pollution around a local airport. At the present time, the noise level per jet takeoff in one neighborhood near the airport is approximately normally distributed with a mean of 100 decibels and a standard deviation of 3 decibels. What is the probability that a randomly selected jet will generate a noise level of more than 105 decibels? A professor would like to utilize the normal distribution to assign grades such that 5% of students receive A's. If the exam average is 62 with a standard deviation of 13, what grade should be the cutoff for an A? (Round your answer.) A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow. If the probability of brisk business is .40 and for slow business is .60, the expected value of perfect information is: The maximin criterion results in the - A group of friends are planning a recreational outing and have constructed the following payoff table to help them decide which activity to engage in. Assume that the payoffs represent their level of enjoyment for each activity under the various weather conditions. Weather Cold Warm Rainy S1 S2 S3 Bike: A1 10 8 6 Hike: A2 14 15 2 Fish: A3 7 8 9 What is the conservative decision for this situation? - A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow. The maximin strategy is: - A brand of television has a lifetime that is normally distributed with a mean of 7 years and a standard deviation of 2.5 years. What is the probability that a randomly chosen TV will last more than 8 years? Write your anwsers with four places after the decimal. A life insurance company wants to estimate their annual payouts. Assume that the probability distribution of the lifetimes of the participants is approximately a normal distribution with a mean of 68 years and a standard deviation of 4 years. What proportion of the plan recipients would receive payments beyond age 75? Round your answer to four places after the decimal. A group of friends are planning a recreational outing and have constructed the following payoff table to help them decide which activity to engage in. Assume that the payoffs represent their level of enjoyment for each activity under the various weather conditions. Weather Cold Warm Rainy S1 S2 S3 Bike: A1 10 8 6 Hike: A2 14 15 2 Fish: A3 7 8 9 If the probabilities of cold weather (S1), warm weather (S2), and rainy weather (S3) are 0.2, 0.4, and 0.4, respectively what is the EVPI for this situation? Consider the following decision tree. What is the expected value for the best decision? Round your answer to the nearest whole number. The quality control manager for ENTA Inc. must decide whether to accept (a1), further analyze (a2) or reject (a3) a lot of incoming material. Assume the following payoff table is available. Historical data indicates that there is 30% chance that the lot is poor quality (s1), 50 % chance that the lot is fair quality (s2) and 20% chance that the lot is good quality (s3). What is the numerical value of the maximin? A manager has developed a payoff table that indicates the profits associated with a set of alternatives under 2 possible states of nature. Alt S1 S2 1 10 2 2 -2 8 3 8 5 Compute the expected value of perfect information assuming that the probability of S2 is equal to 0.4.