Consider a Set of Nine Separate Water Samples from a Region

question 2

Multiple Choice

Consider a set of nine separate water samples from a region where the prevalence of bacterial contamination is 30%. Assuming the binomial distribution is appropriate, what is the probability that exactly three of the samples indicate contamination?

• A) 0.267
• B) 0.333
• C) 0.350
• D) 0.400

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Definitions:

Substitution Effect

The shift in consumer behavior toward different products as a result of changes in their relative costs, prompting the replacement of one item with another.

Output Effect

The impact on the economy when production increases, leading to a higher real GDP and potentially affecting employment and price levels.

Total Revenue Product

Total Revenue Product is the total revenue generated by a firm from selling its output, which is a key concept in understanding a firm's profitability.

Perfect Competitor

A perfect competitor operates in a market where no single buyer or seller has the power to influence prices, and where information, resources, and products are freely and openly available to all.