THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING

question 221

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING:
A basketball player makes 80 percent of his free throws during the regular season.Consider his next eight free throws.
-What is the probability that he will make at least six free throws?

• A)0.1468
• B)0.3355
• C)0.7969
• D)0.2936

---

Definitions:

Marginal Cost

Marginal cost refers to the increase or decrease in the total cost when the quantity produced is incremented by one unit.

Fixed Cost

Costs that remain constant regardless of the amount of goods produced or sold, including rent, wages, and insurance premiums.

Sunk Cost

Costs that have already been incurred and cannot be recovered or refunded, and should not influence future business decisions.

Average Fixed Cost

The cost incurred for fixed inputs (rent, salaries) divided by the quantity of output produced, which decreases as production increases.