Applied-Probability-and-Statistics Exam Dumps : Applied Probability and Statistics (FZO1 C955)

A probability or percentage describes how often an event is expected to occur in the long run. Here, 3% of homes are infected with termites. As a probability, this is 0.03, meaning about 3 out of every 100 homes would be expected to have termites. This is a small probability, so the event should be interpreted as unlikely. It is not impossible, because impossible would require a probability of 0%. It is also not likely, because likely events generally have probabilities substantially greater than 50%. Finally, it is not “as likely as unlikely,” because that language corresponds to a probability near 50%, where occurrence and nonoccurrence are approximately balanced. Since 3% is close to zero but not equal to zero, the technically correct interpretation is that termite infection is unlikely for a randomly selected home in the community. References/topics from the Study Guide: probability interpretation, percentages, unlikely events, complementary probability.

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The central limit theorem applies when the sample size is sufficiently large and observations are independent. It states that the sampling distribution of the sample mean becomes approximately normal as sample size increases, even if the original population distribution is not normal. This makes option A correct. Option B is incorrect because the population does not have to be normal for the theorem to operate; large sample size is what permits the normal approximation. Option C is not the condition that defines the theorem. A population parameter may be unknown in inference, but that is not the trigger for the central limit theorem. Option D is incorrect because the classic central limit theorem for means concerns quantitative data, not purely categorical labels. The theorem is foundational because it justifies using normal-based confidence intervals and hypothesis tests for means when sample sizes are large. Study Guide references/topics: central limit theorem, sample size, sampling distribution, normal approximation.

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The median is the measure of central tendency least affected by outliers because it depends only on the ordered position of values, not on the numerical magnitude of extreme observations. To find the median, the data are arranged from least to greatest and the middle value is identified, or the average of the two middle values is taken when the sample size is even. If an extremely large or extremely small value is added to a data set, the mean can shift substantially because every value contributes to the arithmetic average. The median, however, usually remains stable unless the extreme value changes the middle position. The mode is also not directly affected by magnitude, but it may be absent or non-unique and is often less informative for numerical data. Range is not a measure of central tendency and is highly sensitive to outliers because it uses the minimum and maximum. Study Guide references/topics: descriptive statistics, measures of center, median, resistance to outliers.

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