A Researcher Is Using a Random Numbers Table to Pick

question 46

Multiple Choice

A researcher is using a random numbers table to pick between two groups labeled X and Y. X is to be chosen with probability 5/7 and Y with probability 2/7. The researcher assigns the digits 1, 2, 3, 4, and 5 to X, and she assigns the digits 6 and 7 to Y. The remaining digits are neglected. The researcher uses this section of a random number table
6 8 5 1 7 4 4 0 4 0
What are the first and second choices?

• A) The first selection is X, and the second is X.
• B) The first selection is X, and the second is Y.
• C) The first selection is Y, and the second is X.
• D) The first selection is Y, and the second is Y.

---

Definitions:

Consumer Surplus

The disparity between the cumulative amount consumers are willing to pay for a product or service and the amount they actually pay.

Market Equilibrium

Market equilibrium is a state in a market where the quantity of goods supplied equals the quantity demanded, and there is no incentive for price to change, balancing the forces of supply and demand.

Producer Surplus

The difference between what producers are willing to sell a good for and the price they actually receive.

Price Ceiling

Price Ceiling is a government-imposed limit on how high a price can be charged for a product or service, intended to protect consumers from excessive costs.