Select the Correct Interpretation of the Probability of Guessing the Date

question 40

Multiple Choice

Select the correct interpretation of the probability of guessing the date of his birth, given that he told you in what month he was born. Interpret an event as significant if its probability is less than or equal to 0.05.

• A) Significant
• B) Not significant

---

Definitions:

Externality Problem

A situation where the actions of individuals or firms result in costs or benefits to others that are not reflected in the market prices.

Subsidy

A financial contribution provided by government to reduce the cost of producing goods or services and support businesses or consumers.

External Costs

Costs of an economic activity that are not borne by the parties directly involved in the transaction but by other individuals or society at large.

Supply Curve

A graph that represents the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale.