A Network Externality Occurs When

question 193

Multiple Choice

A network externality occurs when

• A)there is production cost savings from being networked with suppliers.
• B)there is production cost savings from being networked with buyers.
• C)the usefulness of a good is affected by how many other people use the good.
• D)the usefulness of a good is affected by celebrities who use the good.

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Definitions:

Color Brightness

A measure of how light or dark a color appears; often influenced by the amount of light absorbed or reflected by a surface.

Bonferroni Method

A statistical correction method used to address the problem of multiple comparisons, reducing the chances of attaining false-positive results.

Confidence Interval

A range of values, derived from the sample data, within which the true population parameter is expected to lie, at a given probability.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, often related to the number of independent observations in a data set minus any constraints.