A Market Researcher Selects 20 Students at Random to Participate

question 36

Essay

A market researcher selects 20 students at random to participate in a wine-tasting test. Each student is blindfolded and asked to take a drink out of each of two glasses, one containing an expensive wine and the other containing a cheap wine. The students are then asked to identify the more expensive wine. If the students have no ability whatsoever to discern the more expensive wine, what is the probability that the more expensive wine will be correctly identified by:
a. more than half of the students?
b. none of the students?
c. all of the students?
d. eight of the students?

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Definitions:

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Invest Today

A strategy or encouragement to allocate resources, such as time or money, currently, with the expectation of future benefits.

Present Value

The present value of a future amount of money or series of cash flows, when calculated with a certain return rate.

Future Dollar Amount

The projected value of a current sum of money at a specified future date, taking into account factors like inflation or investment returns.