Use the Following Two Probability Distributions for Sales of a Firm

question 14

Multiple Choice

Use the following two probability distributions for sales of a firm to answer Questions :
$$\begin{array} { c c c } \text { Sales } & \begin{array} { c } \text { Distribution1} \\\text { Probability }\end{array} & \begin{array} { c } \text { Distribution2} \\\text { Probability }\end{array} \\\hline 2,000 & 0.05 & 0.05 \\3,000 & 0.20 & 0.15 \\4,000 & 0.50 & 0.20 \\5,000 & 0.20 & 0.35 \\6,000 & 0.05 & 0.25\end{array}$$
-The expect value of sales for Distribution 2 is _____________.

• A) 2,500
• B) 2,758
• C) 2,800
• D) 3,000
• E) none of the above

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Definitions:

Double-Blind Experiments

Double-Blind Experiments are studies where neither the participants nor the experimenters know who has been administered the treatment or the placebo, reducing biases.

Experimenter Bias

The influence of the experimenter’s expectations on the outcome of research.

Double-Blind Experiment

An experimental design in which neither the experimenter nor the participants are aware of which participants are in the experimental group and which are in the control group until the results are calculated.

Experimental Group

The participants in an experiment who receive the drug or other treatment under study—that is, those who are exposed to the change that the independent variable represents.