The Following Table Summarizes Six Potential Customers' Ages and Willingness

question 144

Multiple Choice

The following table summarizes six potential customers' ages and willingness to pay for a solo skydiving experience from SkyMasters.The aircraft has room for eight people,including the pilot and skydiving instructor.The marginal cost of adding each additional passenger is $100.SkyMasters holds significant market power for its region.
Use this information to answer the following questions:

-SkyMasters has decided to charge two different prices,a high price and a low price,based on age.Customers ________ would pay the higher price.

• A) over the age of 50
• B) age 40 and over
• C) age 21 and over
• D) under the age of 21
• E) over the age of 16

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Definitions:

Sample

A subset of individuals, items, or data taken from a larger population, used to conduct statistical analysis without examining the entire population.

Illusion Of Control

The tendency for people to overestimate their ability to control events; an unrealistic belief in one's influence over external events.

Gamblers

Individuals who risk something of value on the outcome of an event with an uncertain result, often with the primary intent of winning additional money or goods.

Regression Toward The Mean

The tendency for extreme or unusual scores or events to fall back (regress) toward the average.