A Book About Bridge Says That the Probability That Each

question 9

Multiple Choice

A book about bridge says that the probability that each of the four players is dealt exactly one ace is about 0.11. To simulate an outcome with probability 0.11, a person could do which of the following simulations:

• A) Simulation 1: look at two digits in the random number table; the outcome occurs if the digits are 11.
• B) Simulation 2: look at two digits in the random number table; the outcome occurs if the digits are any of 00, 01, ... , 11.
• C) Simulation 3: look at two digits in the random number table; the outcome occurs if the digits are any of 00, 01, ... , 10.
• D) Simulation 4: look at two digits in the random number table; the outcome occurs if the digits are any of 01, 02, ... , 11.
• E) Both Simulations 3 and 4 are correct simulations.

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Definitions:

Usury Law

Legislation that sets maximum interest rates that can be charged on loans, to prevent excessive interest.

Market Equilibrium

A market state where the quantity supplied equals the quantity demanded, leading to a balance in price and volume.

Interest Rate

The cost of borrowing money expressed as a percentage of the total amount borrowed.

Nominal Interest Rates

are the stated interest rates unadjusted for inflation, representing the actual current cost of borrowing or the raw yield on savings.