A cumulative frequency distribution on days absent during a calendar year by employees of a manufacturing company is shown below.Days AbsentCumulative Number of Employees0 - 2603 - 5316 - 8149 - 11612 - 142How many employees were absent fewer than six days?
Answer(s): C
This is the difference between the cumulative numbers for the 0-2 group and the 6-8 group, 60 - 14 = 46. There are 46 people between those two groups and they were absent fewer than six days.
A perpetuity of $5,000 a year is priced at $40,000. The annual discount rate is:
Answer(s): A
If r is the discount rate, then 40,000 = 5,000/r, giving r = 12.5%
The formula for conditional probability is given by:
A conditional probability takes the form of P(A | B) = P(AB) / P(B), where P(B) does not equal 0. Note that this is just a rearranged form of the formula for joint probability.
The closing prices of a common stock have been 61 1/2, 62, 61 1/4, 60 7/8, and 61 1/2 for the past week. What is the range?
Answer(s): E
62 - 60.875 = 1.125
You run a mutual fund that holds 24 stocks. Each week, you intend to comprehensively review 3 of them. Assuming this is the first week you are doing this, how many ways can you choose 3 from the 24?
The combination, or binomial formula, gives the number of ways that k objects can be chosen from n items, without regard to the order of choosing. The formula is n_C_k = (n choose k) = n! / [k! *(n-k)!]. In this case, we have (24 choose 3) = 24! / [3! * 21!] = (24 * 23 * 22 ) / (6!) = 2,024.
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