Solve the Problem. -If It Has Been Determined That the Probability of an Probability

question 101

Multiple Choice

Solve the problem.
-If it has been determined that the probability of an earthquake occurring on a certain day in a certain area is 0.01, what are the odds against an earthquake?

• A)1 to 100
• B)98 to 1
• C)100 to 1
• D)99 to 1

---

Definitions:

Inferior Goods

A good that has a negative income elasticity, so that as consumer income rises, the demand for the good falls.

Normal Goods

Goods for which demand increases as the income of individuals increases.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period.

Normal Goods

Goods for which demand increases when income increases, and falls when income decreases, but price remains constant.