THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING

question 39

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING:
The probability that a person catches a cold during the cold and flu season is 0.4.Assume that 10 people are chosen at random.
-What is the probability that exactly four of them will catch a cold?

• A)0.7502
• B)0.6330
• C)0.3670
• D)0.2508

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Definitions:

Price Discrimination

A strategy where a seller charges different prices for the same product or service to different customers, based on the market segment each represents.

Market Power

The ability of a company or group of companies to influence or control the terms and conditions of the market to their advantage, often through monopolistic or oligopolistic practices.

Arbitrage

The simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms to take advantage of differing prices for the same asset.

Price Discrimination

A pricing strategy where different prices are charged to different consumers for the same product or service, often based on their willingness to pay.