A Poll Was Taken of 14,356 Working Adults Aged 40-70

question 164

Multiple Choice

A poll was taken of 14,356 working adults aged 40-70 to determine their level of educatic The participants were classified by sex and by level of education. The results were as folls
$\begin{array}{cccc}\hline \text { Education Level } & \text { Male } & \text { Female } & \text { Total } \\\hline \text { High School or Less } & 3396 & 2340 & 5736 \\\text { Bachelor's Degree } & 3466 & 4026 & 7492 \\\text { Master's Degree } & 522 & 478 & 1000 \\\text { Ph.D. } & 72 & 56 & 128 \\\hline \text { Total } & 7456 & 6900 & 14,356\end{array}$
A person is selected at random. Compute the probability that the person has a master's des ee.

• A) 0.035
• B) 0.033
• C) 0.036
• D) 0.070

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Definitions:

Constant Returns to Scale

A situation in production where increasing the inputs exactly proportionally results in an equivalent increase in output.

Economies of Scale

The financial benefits gained by businesses as a result of their operation size, wherein the expense for each unit produced typically drops as the scale expands.

Average Total Costs

The total cost of production divided by the quantity of output produced; it includes both fixed and variable costs.

Economies of Scale

Refers to the cost advantage that arises with increased output of a product, where the average cost per unit decreases as production scales up.