Corey and Trevor Are Playing a Coin-Tossing Game Where Each

question 130

Multiple Choice

Corey and Trevor are playing a coin-tossing game where each player, in turn, tosses a fair coin consecutively ten times. The winner of the game is the player who tosses the most consecutive tails. Corey decides to go first and tosses tails five times in a row. Ricky and Julian are observing the game and have the following conversation before Corey attempts the sixth toss: Ricky: "The probability of Corey tossing tails has to be greater than 75% because he is on a roll!"
Julian: "No, Ricky, the probability of Corey tossing tails has to be less than 25% because he is due to toss heads."
Ricky's statement is an example of __________, and Julian's statement is an example of ____________.

• A) the hot-hand fallacy; the hot-hand fallacy
• B) the gambler's fallacy; the gambler's fallacy
• C) the hot-hand fallacy; the gambler's fallacy
• D) the gambler's fallacy; the hot-hand fallacy
• E) neither the gambler's fallacy nor the hot-hand fallacy; the gambler's fallacy

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Definitions:

Minimum Wage

The lowest legal salary that employers can pay workers, set by government legislation.

Semiskilled Labor

refers to work that requires some level of training or skills but is less complex and requires less education than skilled labor.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity supplied.

Demand Curves

Demand curves graphically represent the relationship between the price of a good and the quantity demanded by consumers.