QUESTION 1
A used car salesman at Midlands Honda knows that 20% of potential buyers who test drive a vehicle will eventually buy a vehicle from him. If he takes a test drive with 15 potential buyers, what is the probability that at least 3 will purchase a vehicle from him? Assume that the number of test drivers who buy can be modeled by a binomial random variable.

A. .6020
B. .2501
C. .3980
D. .7518

QUESTION 2
Medical billing errors and fraud are on the rise. According to Medical Billing Advocates of America, three out of four times, the medical bills that they review contain errors. If 15 medical bills are randomly selected, what is the probability that more than 10 will contain errors?

A. .6865
B. .8516
C. .3135
D. .1484

QUESTION 3
Do Millennials or GenXers feel more tense or stressed out at work? A survey of employed adults conducted an online poll by Harris Interactive on behalf of the American Psychological Association. The results were:
Felt Tense or Stressed Out at Work
Age Group, Yes, No
Millennals,175, 206
GenXers, 183, 390

Based on the survey, answer the following: Given that the employed adult is a millennial, what is the probability that the person felt tense or stressed out at work?
A. .459
B. .489
C. .183
D. .175

QUESTION 4
1. You have a choice of receiving $1000 in cash or receiving a beautiful painting from your great uncle, Uncle George. The actual value of the painting is uncertain. You are told that the painting has a 20% chance of being worth $2000, a 50% chance of being worth $1000, and a 30% chance of being worth $500. Assuming that you are risk neutral (and therefore base your choice on expected value), what should you do?
A. Choose the painting, since its expected value is $1200
B. Choose the painting, since its expected value is $1050
C. Choose the $1000 in cash, since the expected value of $1000 is higher than the expected value of the painting
D. Choose the $1000 in cash, since Uncle George's stuff is usually garbage.

QUESTION 1 A used car salesman at Midlands Honda knows that 20% of...