A Researcher Is Using a Random Number Table to Pick

question 51

Multiple Choice

A researcher is using a random number table to pick between two groups labelled X and Y.X is to be chosen with a probability of 5/7 and Y with a probability of 2/7.The researcher assigns the digits {1, 2, 3,
4, 5} to X and the digits {6, 7} to Y.The researcher uses this section of a random number table: What are the first and second choices?

• A)The first choice is X and the second choice is X
• B)The first choice is X and the second choice is Y
• C)The first choice is Y and the second choice is X
• D)The first choice is Y and the second choice is Y

---

Definitions:

Interest Rates

The expense incurred when taking out a loan, usually shown as a percent of the total amount loaned.

Federal Funds Market

A U.S. financial market allowing banks to borrow and lend excess reserves to each other, usually overnight, at an interest rate called the federal funds rate.

Discount Window

The discount window is a central banking facility that allows financial institutions to borrow reserves, usually short-term, at a predetermined interest rate, to maintain liquidity.

Negative Excess Reserves

Refers to a situation where a bank's actual reserves fall short of the required reserves; although not typical, it would indicate financial stress or unusual circumstances.