Without Writing Down Any Calculations, Determine the Mean of the Distribution

question 67

Multiple Choice

Without writing down any calculations, determine the mean of the distribution shown. The variance of this probability distribution is (you can do this in your head!) $$\begin{array} { | l | c | c | c | } \hline \mathrm { x } & - 1 & 0 & 1 \\\hline \mathrm { P } ( \mathrm { x } ) & 0.25 & 0.50 & 0.25 \\\hline\end{array}$$

• A) 0.25
• B) 0.50
• C) 0.75
• D) 1.00

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Definitions:

Accounting Profits

The difference between total revenue and explicit costs; the net income a firm reports on its income statement.

Total Costs

The aggregate of all expenses associated with manufacturing products or services, which includes fixed and variable costs.

Most Efficient Output

The level of production at which a firm achieves the lowest possible cost per unit, maximizing productivity and minimizing waste.

Short Run

A period in economic analysis where at least one input is fixed and cannot be adjusted by firms, contrasting with the long run where all inputs are variable.