Consider the Given Discrete Probability Distribution $P ( x > 3 )$

question 12

Multiple Choice

Consider the given discrete probability distribution. Find $P ( x > 3 )$ $$\begin{array} { | c | c | c | c | c | c | } \hline x & 1 & 2 & 3 & 4 & 5 \\\hline p ( x ) & .1 & .2 & .2 & .3 & .2 \\\hline\end{array}$$

• A) .2
• B) .7
• C) .5
• D) .3

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Definitions:

Price System

The price system is the mechanism through which prices are determined for goods and services in an economy, facilitating the allocation of resources, signaling what to produce and consume, and coordinating economic activity.

Supply and Demand

Fundamental economic model that explains how the interaction between the quantity of a good or service available (supply) and the desire for it (demand) determines its price.

Consumers

Individuals or entities that purchase goods and services for personal use or consumption.

External Costs

Costs incurred as a result of an economic activity that affects third parties who did not choose to incur that cost.