Suppose 5% of the People Who Buy a Certain Type

question 20

Multiple Choice

Suppose 5% of the people who buy a certain type of DVD player return it to get their money back.The DVD player costs $100.What is the expected loss, per customer, for the company due to returns (ignoring the monetary value of the returned DVD player) ?

• A)$5
• B)$0; most people don't return it
• C)Either $0 or $100, but it is impossible to determine which.
• D)$100

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Definitions:

Qh

An abbreviation commonly used in medical prescriptions, meaning every hour.

Topical

Pertaining to application on a particular area of the skin or body surface for local treatment.

Transdermal

A reiteration, largely pertaining to drug delivery systems that release medication through the skin into the bloodstream.

Subcutaneous

Relating to or located beneath the skin's surface.