The Demand Equation for the Sicard Sports Watch Is Given

question 4

Multiple Choice

The demand equation for the Sicard sports watch is given by where x (measured in units of a thousand) is the quantity demanded per week and p is the unit price in dollars. Use Simpson's Rule and (take n = 8) to estimate the consumer's surplus if the market price is $25/watch.(Round your answer to two decimal places)

• A) $579,597.2
• B) $364,597.2
• C) $354,597.2
• D) $344,597.2

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Definitions:

Expected Value

A calculated average outcome of a random variable, taking into account all possible values and their probabilities.

Sample Information

Data or observations collected from a subset of a larger population, used to estimate or infer characteristics about the whole population.

EMV

Expected Monetary Value; a financial concept that calculates the average outcome when the future includes scenarios that may or may not happen.

Decision Tree

A graphical representation used to visualize the path of decisions and their possible consequences, including outcomes, resources, cost, and utility.