The Wii Is a Wildly Popular Home Video Game Console

question 165

Multiple Choice

The Wii is a wildly popular home video game console released by Nintendo. The Wii system was first available in the U.S. in November, 2006 and has sold more than 30 million units as of August 2010. The Wii retails for $199. Suppose Ahmed is willing to pay $230, Lana is willing to pay $175, and Bodie is willing to pay $300 for a Wii. If these three are the only consumers in the market, what is the value of the market consumer surplus?

• A) $132
• B) $855
• C) $630
• D) $498

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability within a data set, indicating how spread out the numbers are from the mean.

Statistically Significant

This term implies that the likelihood of the results happening by random chance is very low, underlining the importance of the findings.

Mean

In statistics, the arithmetic average of a set of numbers, calculated by adding all the values together and then dividing by the number of values.

P Value

A statistical measure that indicates the probability of the observed data occurring under the null hypothesis, used in hypothesis testing to determine significance.