A Local Microbrewery Believes It Produces the Best Tasting Dark

question 111

Multiple Choice

A local microbrewery believes it produces the best tasting dark beer in town. To make its case, seven volunteers are asked to participate in a beer tasting contest. Each volunteer is asked to taste 5 dark beers and to pick the one he/she prefers. Of the 5 dark beers, one is microbrewery's and the other 4 are national favorites. What is the probability that exactly 3 of the volunteers pick the microbrewery's beer? Assume there is no taste preference for any of the beers and that chance alone determines each selection.

• A) 0.1730
• B) 0.1147
• C) 0.0577
• D) 0.0287

Analyze the effects of complementary and substitute goods on market dynamics.

Recognize the role of consumer expectations and preferences in shaping market demand.

Discern the distinction between normal goods and inferior goods in relation to income changes.

Comprehend the impact of technological advancements and production costs on supply.

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Definitions:

High-involvement Products

Products that carry a high purchase risk or are expensive, thus requiring more thought, research, and comparison from consumers before making a purchase decision.

Limited Risk

Exposures to potential losses that are confined or restricted in magnitude, often through strategies such as diversification or the use of financial instruments like options.

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that categorizes human needs into a hierarchy, from basic physiological needs to self-actualization.

Individual Needs

The specific requirements or preferences of a single person, often considered in healthcare, education, and customer service.