Exhibit 5-2

question 67

Multiple Choice

Exhibit 5-2.Consider the following cumulative distribution function for the discrete random variable X. Refer to Exhibit 5-2.What is the probability that X is greater than 2?

• A)0.14
• B)0.30
• C)0.44
• D)0.56

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Definitions:

Consumer Surplus

The disparity between the ideal total expenditure consumers are willing to make on a good or service and the real expenditure.

Producer Surplus

The distinction in financial terms between what producers expect to receive for a product or service and the actual revenue attained.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual market price they receive, reflecting the benefit to producers from selling at a higher price.

Tax

A fundamental fiscal obligation or alternative sort of levy placed upon a taxpayer by a government power, promoting government funding and assorted investments in public infrastructure.