Determine Whether the Following Is a Probability Distribution

question 38

Essay

Determine whether the following is a probability distribution. If not, identify the requirement that is not satisfied.
$\begin{array} { c | c } \boldsymbol { x } & \boldsymbol { P } ( \boldsymbol { x } ) \\\hline 0 & 0.1296 \\1 & 0.3456 \\2 & 0.3456 \\3 & 0.1536 \\4 & 0.0256\end{array}$

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Definitions:

Fixed Input

Inputs used in production that cannot be varied in the short term, such as buildings or machinery.

Plant Size

The physical capacity or dimensions of a manufacturing facility.

Implicit Costs

They represent the opportunity costs of using resources that a company already owns, rather than the out-of-pocket expenses.

Economic Costs

The total cost of production, including both explicit costs like wages and materials and implicit costs such as opportunity costs.