You Have Seven Cards, Numbered 3 Through 9, and You

question 35

Short Answer

You have seven cards, numbered 3 through 9, and you pick one at random. If you pick a card with a prime number, you get 1 point; if you pick a card with a composite number, you lose 1 point. Find the expected value of the number of points you get.

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Definitions:

Average Total Cost

The total cost of production (including fixed and variable costs) divided by the number of units produced, indicating the per-unit cost of production.

X-Inefficiency

Inefficiency in an organization's allocation of resources due to a lack of competitive pressure, often leading to higher costs and lower output.

Profit-Maximizing Output

The point of production where a company reaches its maximum profit potential.

Economies Of Scale

The cost advantages that businesses obtain due to the scale of operation, with cost per unit of output decreasing with increasing scale.