When Conducting a Study on Success Rates, Which of the Following

question 96

Multiple Choice

When conducting a study on success rates, which of the following would most likely be subject to survivor bias?

• A) Of the 4 Starbucks locations that opened exactly 5 years ago in the same city, the location next to the concert arena has been the most financially successful.
• B) Of the 75 oil exploration firms based in North Dakota, over half of those that recently filed for bankruptcy have been in business for 5 years or less.
• C) Of the 25 high schools located in Concordia County, this year's SAT scores were highest from students who attend Springdale High, the newest high school in the county.
• D) Of the 115 oceanfront hotels in Honolulu, only those with private beaches are able to charge more than $200 per night on average.

---

Definitions:

Absolute Advantage

The capacity of a person, corporation, or nation to manufacture a product or provide a service at a lower per-unit expense than any other participant in the market.

Comparative Advantage

The capability of an individual or organization to create a product or provide a service with a smaller opportunity cost than another.

Price

The amount of money required for the purchase of a good or service, reflecting the value that buyers and sellers assign to it.

Wheat

A cereal grain cultivated worldwide and is one of the staple foods, used to make products like bread, pasta, and pastry.