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E-Books With the Explosive Growth of Electronic Book, or E-Book, Readers

question 17

Multiple Choice

E-Books
With the explosive growth of electronic book, or e-book, readers like Amazon's Kindle and Barnes & Noble's Nook and even smart phones like the iPhone and BlackBerry devices, book pricing is becoming a significant concern for book publishers. Digital book sales have grown exponentially from almost non-existent in 2002 to more than $120 million in 2009. While these sales are still small compared to industry sales, they are expected to grow even more in the coming years due to the plethora of e-book readers coming on the market. This creates a dilemma for publishers, though, because the average price of a hardcover book, which is the bread-and-butter of publishers' profits, is $27.00, whereas the price of an e-book is $9.99. To protect profits, some publishers, like Simon & Schuster, are delaying the electronic editions by four months. Other publishers are following suit, claiming consumers will not buy the hardcover at $27.00 if they can purchase it at a much lower price electronically.
-Refer to E-Books.It is expected that traditional book clubs,like Doubleday and Book-of-the-Month clubs,will begin offering ebook options to members. Members pay an initial membership fee of $25.00 and $0.99 per ebook purchased. This is an example of:

Definitions:

Sampling Distributions

The distribution likelihood of a statistical value gathered from multiple samples from a given population.

Consistent Estimator

An attribute of an estimator indicating that as the sample size increases, the estimates it produces converge in probability to the parameter being estimated.

Sample Mean

The mean value derived from a dataset sample, utilized to predict the overall population's average.

Sampling Distribution

The probability distribution of a statistic (like a mean) derived from a large number of samples of a population.