Participants Are Told, "Hospital a Has an Average of 45

question 34

Multiple Choice

Participants are told, "Hospital A has an average of 45 births per day; Hospital B has an average of only 15 births per day." The participants are then asked, "Which hospital is more likely to have a day in which at least 60% of the babies born are female?" In answering the question, participants

• A) seem insensitive to the fact that departures from the average case are more likely with a small sample.
• B) seem insensitive to the fact that departures from the average case are more likely with a larger sample.
• C) correctly realize that departures from the average case are not dependent on hospital size.
• D) answer in a fashion governed by the law of small numbers.

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Definitions:

Export

The act of sending goods or services from one country to another for sale or trade.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit received from the purchase.

World Price

The international market price of a good or service, influenced by global supply and demand.

Free Trade

An economic policy that allows goods and services to be bought and sold across international borders with little to no government tariffs, quotas, subsidies, or prohibitions to inhibit exchange.