The Probability That a Person Will Have 0, 1, or 2

question 20

Multiple Choice

The probability that a person will have 0, 1, or 2 dental checkups per year is 0.2, 0.5, and 0.3, respectively. If seven people are picked at random, what is the probability that two will have no
Checkups, four will have one checkup, and one will have two checkups in the next year?

• A) 0.079
• B) 0.013
• C) 0.008
• D) 0.043

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Definitions:

Long-run Equilibrium

The state in which all factors of production and costs are variable, and firms make neither excess profit nor losses, indicating stability in the market.

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogeneous products, free entry and exit, and perfect information, resulting in firms being price takers.

Price

The amount of money required to purchase a good or service; the value that must be exchanged to acquire a specific product.

Short-run Industry Supply

The total quantity of goods that producers in an industry are willing and able to sell at different prices in a short period, without changing production capacity.