Reading 9: Common Probability Distributions - LOS d, (Part

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1、A casual laborer has a 70 percent chance of finding work on each day that she reports to the day labor marketplace. What is the probability that she will work three days out of five?

A) 0.3192.

B) 0.5165.

C) 0.3087.

D) 0.6045.

2、Assume thirty percent of the CFA candidates have a degree in economics. A random sample of three CFA candidates is selected. What is the probability that none of them has a degree in economics?

A) 0.343.

B) 0.900.

C) 0.027.

D) 0.300.

3、There is an 80 percent chance of rain on each of the next six days. What is the probability that it will rain on exactly two of those days?

A) 0.15364.

B) 0.24327.

C) 0.35678.

D) 0.01536.

4、The Night Raiders, an expansion team in the National Indoor Football League, is having a challenging first season with a current win loss record of 0 and 4. However, the team recently signed four new defensive players and one of the team sponsors (who also happens to hold a CFA charter) calculates the probability of the team winning a game at 0.40. Assuming that whether the team wins a game is independent of whether it wins any other game, the probability that the team will win 6 out of the next 10 games is closest to:

A) 0.112.

B) 0.417.

C) 0.350.

D) 0.033.

5、For a certain class of junk bonds, the probability of default in a given year is 0.2. Whether one bond defaults is independent of whether another bond defaults. For a portfolio of five of these junk bonds, what is the probability that zero or one bond of the five defaults in the year ahead?

A) 0.5904.

B) 0.7373.

C) 0.0819.

D) 0.4096.

6、Which of the following is NOT an assumption of the binomial distribution?

A) The trials are independent.

B) Random variable X is discrete.

C) The expected value is a whole number.

D) Each trial can only have one of two possible outcomes.

7、Which of the following could be the set of all possible outcomes for a random variable that follows a binomial distribution?

A) (-1, 0, 1).

B) (0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11).