Assume an Individual Writes Down Hs and Ts to Simulate

question 33

Multiple Choice

Assume an individual writes down Hs and Ts to simulate 100 coin flips. On average, how will this series appear relative to the result of 100 actual coin flips? Relative to the actual coin flips, the simulated series will:

• A) contain too many runs with too much length per run.
• B) contain too many runs with not enough length per run.
• C) contain too few runs with too much length per run.
• D) contain too few runs with not enough length per run.

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Definitions:

Long Run

A period of time in economics where all factors of production and costs are variable, allowing for complete adjustment to changes in market conditions.

Fixed Resource

An asset or input whose quantity cannot be altered in the short run for the production of goods and services.

Explicit Costs

Direct, out-of-pocket payments for inputs or resources used by a business, easily identifiable and recorded.

Entrepreneurial Talent

The unique set of skills, insight, and intuition possessed by individuals that enables them to identify and exploit new business opportunities.