For a Particular Diamond Mine, 76% of the Diamonds

question 9

Multiple Choice

For a particular diamond mine, 76% of the diamonds fail to qualify as "gemstone grade". A random sample of 96 diamonds is analysed. Find the mean

• A) 0.044
• B) 0.24
• C) 0.96
• D) 0.76

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Definitions:

Incentive Function

The inducement that an increase in the price of a commodity gives to sellers to make more of it available (and conversely for a decrease in price), and the inducement that an increase in price offers to buyers to purchase smaller quantities (and conversely for a decrease in price).

Rental Payments

Rental payments are periodic payments made by a tenant to an owner for the use of property, such as for housing or commercial space.

Productive Efficiency

The production of a good in the least costly way; occurs when production takes place at the output at which average total cost is a minimum and marginal product per dollar’s worth of input is the same for all inputs.

Production Cost

The total expenses incurred in the process of producing or manufacturing goods, including materials, labor, and overhead costs.