A Researcher Is Using a Random Numbers Table to Pick

question 3

Multiple Choice

A researcher is using a random numbers table to pick between two groups labeled X and Y. X is to be chosen with probability 5/7 and Y with probability 2/7. The researcher
Assigns the digits 1, 2, 3, 4, and 5 to X, and she assigns the digits 6 and 7 to Y. The
Remaining digits are neglected. The researcher uses this section of a random number table
7 9 2 1 5 7 7 3 1 1
What are the first and second choices?

• A) The first selection is X, and the second is X.
• B) The first selection is Y, and the second is Y.
• C) The first selection is Y, and the second is X.
• D) The first selection is X, and the second is Y.

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Definitions:

Initial Endowment

The initial allocation or distribution of resources, goods, or wealth among individuals or entities at the start of an economic experiment or model.

Apples

A type of fruit commonly consumed fresh, cooked, or as juice, recognized for its sweet or tart flavor.

Pareto Optimal Allocation

A condition of resource distribution in which no one person can be made better off without causing detriment to at least another person.

Endowed

In economics, it refers to the initial allocation of income, wealth, or goods to an individual or an entity at the start of an economic analysis or experiment.