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Chapter 11 Study Guide Essay

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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: 1 Page 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: 1 Page 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: 2 Page Ref: 489
Main Heading: Types of Probability
Key words: objective probabilities, classical probabilities

4) …show more content…

Answer: FALSE
Diff: 1 Page Ref: 504
Main Heading: The Normal Distribution
Key words: continuous random variables

21) Seventy two percent of all observations fall within 1 standard deviation of the mean if the data is normally distributed.
Answer: FALSE
Diff: 1 Page Ref: 504
Main Heading: The Normal Distribution
Key words: normal distribution

22) Another name for the mean of a probability distribution is its expected value.
Answer: TRUE
Diff: 1 Page Ref: 503
Main Heading: Mean
Key words: mean of probability distribution; expected value

23) An inspector correctly identifies defective products 90% of the time. For the next 10 products, the probability that he makes fewer than 2 incorrect inspections is 0.736.
Answer: TRUE
Diff: 2 Page Ref: 497
Main Heading: Statistical Independence and Dependence
Key words: binomial probability distribution

24) In Bayesian analysis, additional information is used to alter the conditional probability of the occurrence of an event.
Answer: FALSE
Diff: 1 Page Ref: 495
Main Heading: Bayesian Analysis
Key words: conditional probability

25) Objective probabilities that can be stated prior to the occurrence of an event are __________.
Answer: classical or a priori
Diff: 1 Page Ref: 489
Main Heading: Types of Probability
Key

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