In an Effort to Persuade Customers to Reduce Their Electricity

question 104

Short Answer

In an effort to persuade customers to reduce their electricity consumption, special discounts have been offered for low consumption customers. In Florida, the EPA estimates that 70% of the residences have qualified for these discounts.
If we randomly select four residences in Florida, what is the probability exactly two of the four will have qualified for the discounts?
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If, instead, a sample of 20 residences is selected, what is the probability 12 or more will have qualified for the discounts?
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Recognize the legislative acts related to fair competition and deceptive practices.

Understand the effects of price setting on consumer demand and market competition.

Analyze the impact of cost considerations on price setting.

Understand the concept of price elasticity and its calculation.

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Definitions:

Hypermarket

A large retail space combining a supermarket and a department store, offering a wide range of products under one roof.

Supercenter

A large retail establishment that combines a supermarket with a department store, offering a wide range of goods and services under one roof.

Extreme Value Retailer

Retailers that offer products at extremely low prices, often in a no-frills environment, targeting price-sensitive consumers.

Anchor Stores

Large and prominent retail stores typically found in shopping malls and centers, used to attract a significant volume of shoppers by providing a wide range of products and services.