It Is Spring,and Several Graduates of State U Are Seeking

question 71

Multiple Choice

It is spring,and several graduates of State U are seeking employment.State U graduates have evenly distributed GPAs,from 2.0 to 4.0,with an average GPA of 3.0.The largest employer in town,Acme Dynamite,is interviewing candidates,hoping to hire a few hard workers.While Acme does not require students to submit a transcript with their applications,the hiring officer believes that high GPAs signal a willingness to work hard.
Suppose Acme's Human Resources Department knows that all State U students with GPAs of 3.0 or better include transcripts with their applications.Therefore,the expected GPA of students who do not include transcripts with their application is at most _______.

• A)3.0
• B)2.9
• C)2.75
• D)2.5

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Definitions:

Implicit Cost

The opportunity costs that arise from using assets, resources, or funds in specific ways rather than the next best alternative.

Capital

The total value of assets owned by an individual or firm—physical assets plus financial assets.

Opportunity Cost

The cost of the next best alternative foregone as the result of making a decision.

Depreciation

The reduction in the value of an asset over time, often due to wear and tear or obsolescence.