Which of the Following Is Correct About a Probability Distribution

question 27

Multiple Choice

Which of the following is correct about a probability distribution?

• A) Sum of all possible outcomes must equal 1
• B) Outcomes must be mutually exclusive
• C) Probability of each outcome must be between 0 and 1 inclusive
• D) All of the above

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Definitions:

Falling Costs

A situation where the expenses associated with producing a good or service decrease, often leading to lower prices for consumers.

Economies of Scale

The cost advantage that arises with increased output of a product, where average costs start to fall as production scales up.

Marginal Returns

denotes the additional output obtained by adding one more unit of a specific input, while keeping other inputs constant.

Diseconomies of Scale

The scenario where costs start increasing as a company or project becomes too large, leading to inefficiency.