Provide an Appropriate Response $\$ 1074 , \$ 1536 , \$ 1641 , \$ 528 , \$ 801 , \$ 1662 , \$ 1347 , \$ 696$

question 150

Multiple Choice

Provide an appropriate response.
-The mean monthly rent for a sample of studio apartments in one city is $1200 with a standard deviation of $210. The monthly rents for eight more studio apartments in the city are listed. Using the sample statistics
Above, determine which of the data values are unusual. Are any of the data values very unusual? Explain.
(Assume the data set has a bell-shaped distribution.) $\$ 1074 , \$ 1536 , \$ 1641 , \$ 528 , \$ 801 , \$ 1662 , \$ 1347 , \$ 696$

• A)$1641, $528, $1662, $696 are unusual because they are more than 2 standard deviations from the mean. $528 is very unusual because it is more than 3 standard deviations from the mean.
• B)$1536, $1641, $528, $801, $1662, $696 are unusual because they are more than 1 standard deviation from the mean. $1641, $528, $1662, $696 are very unusual because they are more than 2 standard deviations
• From the mean.
• C)$528 is unusual because it is more than 3 standard deviations from the mean. There are no values that are very unusual because no value is more than 4 standard deviations from the mean.
• D)$1641, $528, $801, $1662, $696 are unusual because they are more than 2 standard deviations from the mean. $528 and $696 are very unusual because they are more than 3 standard deviations from the mean.

Understand the concept and examples of tacit and overt collusion in regulating competition among firms.

Identify conditions under which tacit collusion is difficult to achieve or maintain in markets.

Recognize the role of international cartels, particularly OPEC, in affecting global markets.

Explain the tit-for-tat strategy and its implication for sustaining cooperation or competition among firms.

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Definitions:

Average Cost

A method for inventory valuation that calculates the cost of goods sold and ending inventory based on the average cost of all items purchased.

Retail Inventory Method

An accounting process used by retailers to estimate inventory value by converting the retail value of inventory to a cost basis, based on the relationship between cost and retail price.

Ending Inventory

The value of goods available for sale at the end of an accounting period.

Gross Profit Method

A method of estimating the amount of ending inventory by applying the gross profit percentage to sales.