(I a New Computer Game Has Been Developed and Its

question 83

Multiple Choice

(i. A new computer game has been developed and its market potential is to be tested by 80 veteran game players. If sixty players liked the game, the probability that veteran game players will like the new computer game is 0.60. (ii) A probability that is based on someone's opinion, guess or hunch is subjective.
(iii) The probability that a one-spot or a two-spot or a six-spot will appear face up on the throw of one die is 1/2 or 0.5.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) is a correct statement but not (ii) or (iii).
• C) (i) and, (iii) are correct statements but not (ii).
• D) (ii) and, (iii) are correct statements but not (i).
• E) (i), (ii) and (iii) are all false statements.

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Definitions:

Total Variable Costs

The sum of all costs that vary with the level of output or production, such as materials and labor, as opposed to fixed costs which remain constant regardless of the level of production.

Average Fixed Cost

The steady costs associated with production, irrespective of output volume, divided by the number of units produced.

Marginal Cost

The added cost faced when one additional unit of a product or service is produced.

Average Total Cost

The total cost of production divided by the quantity of output produced; it includes both fixed and variable costs.