Find the Indicated Probability

question 99

Multiple Choice

Find the indicated probability.
-The brand name of a certain chain of coffee shops has a 57% recognition rate in the town of Coffleton. An executive from the company wants to verify the recognition rate as the company is interested in opening a coffee shop in the town. He selects a random sample of 10 Coffleton residents. Find the probability that exactly 4 of the 10 Coffleton residents recognize the brand name.

• A) 0.106
• B) 0.0604
• C) 0.000667
• D) 0.140

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Definitions:

Oligopoly

A market structure characterized by a small number of firms that dominate the market, leading to limited competition and potentially higher prices for consumers.

Perfectly Competitive

describes a market structure where there are many buyers and sellers, products are homogeneous, and there are no barriers to entry or exit, leading to optimal distribution and resource allocation.

Contestable Markets

Markets in which entry and exit are easy enough to hold prices to a competitive level even if no entry actually occurs.

Oligopolistic Firms

Companies operating within an oligopoly, a market structure characterized by a small number of firms controlling a large market share, often leading to limited competition.