Preparing for the GMAT A company that offers courses to prepare students for the Graduate Management Admission Test (GMAT) has the following information about its customers: 20% are currently undergraduate students in business; 15% are undergraduate students in other fields of study; 60% are college graduates who are currently employed; and 5% are college graduates who are not employed. Choose a customer at random. (a) Whats the probability that the customer is currently an undergraduate? Which rule of probability did you use to find the answer? (b) Whats the probability that the customer is not an undergraduate business student? Which rule of probability did you use to find the answer?

Statistics 350 Fall 2007 Exam 1 Explanations 1. a. This is an experiment because the treatment groups were randomly assigned. b. Weight loss is a response variable because it is what we wish to study. A response variable cannot also be an explanatory nor confounding variable so neither of these is appropriate. Weight loss is also a (continuous) quantitative variable...