Exhibit 5-7 The Probability That Pete Will Catch Fish When He Goes

question 75

Multiple Choice

Exhibit 5-7
The probability that Pete will catch fish when he goes fishing is .8. Pete is going to fish 3 days next week. Define the random variable X to be the number of days Pete catches fish.
-Refer to Exhibit 5-7. The variance of the number of days Pete will catch fish is

• A).16
• B).48
• C).8
• D)2.4

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Definitions:

Comparative Advantage

The capacity of a person, business, or nation to create a product or offer a service with a smaller opportunity cost compared to its rivals.

Opportunity Cost

The cost of missing out on the next best alternative when making a decision.

Total Output

The total quantity of goods or services produced by a firm or an economy in a specific period.

Comparative Advantage

The ability of a country or individual to produce a good or service at a lower opportunity cost than competitors.