Consider the Experiment of Tossing a Fair Coin Three Times

question 96

Multiple Choice

Consider the experiment of tossing a fair coin three times and observing the number of heads that result (X = number of heads) .What is the variance for this distribution?

• A)1.5
• B)1.22
• C)0.75
• D)0.87

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Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable.

Total Surplus

The sum of consumer and producer surplus, representing the total net benefit to society from the production and consumption of a good or service.

Quantity Supplied

The total amount of a product or service that producers are willing and able to sell at a specific price over a given period of time.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a given price.