## A snow tire manufacturer believes that a typical set of snow tires lasts on average for 30,000 miles. They also believe that 95% of drivers get between 20,000 and 40,000 miles of use from the tires.

8. Question 8 A snow tire manufacturer believes that a typical set of snow tires lasts on average for 30,000 miles. They also believe that 95% of drivers get between…

## For which of the following random variables would the use of a Normal distribution as a model be a clear error?

7. Question 7 For which of the following random variables would the use of a Normal distribution as a model be a clear error? 1 point   Student test scores…

## If you wanted to model an outcome variable that is defined as whether or not someone will buy a new car within the next 12 months, then what type of random variable would you use to capture this outcome?

4. Question 4 If you wanted to model an outcome variable that is defined as whether or not someone will buy a new car within the next 12 months, then…

## What essential information can a probabilistic model provide, that a deterministic model can’t?

2. Question 2 What essential information can a probabilistic model provide, that a deterministic model can’t? 1 point    It can include a range of uncertainty for the model output…

## Which of the following characteristics implies that a quantitative model is probabilistic in nature?

1. Question 1 Which of the following characteristics implies that a quantitative model is probabilistic in nature? 1 point   The fact that it is based on theory rather than…

## If you had two variables, the weight of a car measured in pounds and the fuel economy measured in miles per gallon, then which of the following quantitative modeling methodologies would be preferred for modeling fuel economy as a function of weight?

10. Question 10 If you had two variables, the weight of a car measured in pounds and the fuel economy measured in miles per gallon, then which of the following…

## Using the same probability as described in Question 5, and assuming that moves in the market are independent from day to day, then what is the probability that the market goes up on exactly 2 of the next 4 days?

6. Question 6 Using the same probability as described in Question 5, and assuming that moves in the market are independent from day to day, then what is the probability…

## A Bernoulli random variable, representing whether or not the stock market goes up or down tomorrow (assume that the market cannot be unchanged), has an “up” probability of 0.6 and a “down” probability of 0.4. What is the standard deviation of this random variable?

5. Question 5 A Bernoulli random variable, representing whether or not the stock market goes up or down tomorrow (assume that the market cannot be unchanged), has an “up” probability…

## Assuming that a Normal distribution model is reasonable for the tire wear, what is the approximate probability that a randomly drawn driver gets more than 25,000 miles of use from their tires? Use the value for the mean and standard deviation from Q8.

9. Question 9 Assuming that a Normal distribution model is reasonable for the tire wear, what is the approximate probability that a randomly drawn driver gets more than 25,000 miles…

## Monte Carlo simulation models incorporate uncertainty in what manner?

3. Question 3 Monte Carlo simulation models incorporate uncertainty in what manner? 1 point   Monte Carlo simulations do not in fact incorporate uncertainty They generate a range of inputs…