Suppose That the Random Variable Has the Probability Distribution

question 26

Multiple Choice

Suppose that the random variable has the probability distribution described by the following density curve. ​ ​
What probability is represented by the shaded area? Suppose the shaded area . Interpret this probability in the context of this problem.

• A) .About 65% of U.S.population consuming diet drinks are people aged less than 20 years.
• B) .About 65% of U.S.population consuming diet drinks are people aged 50 years and over.
• C) .About 65% of U.S.population consuming diet drinks are people aged between 20 and 50 years.
• D) .About 0.65% of U.S.population consuming diet drinks are people aged between 20 and 50 years.
• E) .About 35% of U.S.population consuming diet drinks are people aged between 20 and 50 years.

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Definitions:

Giffen Good

Good whose demand curve slopes upward because the (negative) income effect is larger than the substitution effect.

Substitution Effect

The alteration in consumer behavior as a result of variations in the relative costs of products, driving consumers to shift from higher-priced items to those that are more affordable.

Increase In Price

occurs when the cost of goods or services rises, affecting consumer purchasing power and potentially leading to changes in supply and demand dynamics.

Income Effect

Variations in the income levels of an individual or the broader economy, and how these variations influence the demand for specific goods or services.