A Researcher Reports That the Probability of a College Student

question 4

Multiple Choice

A researcher reports that the probability of a college student living on campus is p = .38.If a small local college has 2,000 students enrolled,then what is the standard deviation of college students living on campus? Hint: This is a binomial probability distribution.

• A) 471.2 students
• B) 21.7 students
• C) 760 students
• D) There is not enough information to answer this question.

Understand the concept of perfect substitutes and perfect complements in consumer preferences.

Comprehend the importance of marginal rates of substitution (MRS) in the context of consumer choice.

Learn how changes in income and prices affect consumer's budget constraints and purchasing power.

Understand what factors lead to a consumer's optimal decision in terms of utility maximization.

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Definitions:

Net Present Value

A method of evaluating the attractiveness of an investment project, by determining the present value of its expected future cash flows minus the initial investment.

Net Present Value

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project, calculating the difference between the present value of cash inflows and the present value of cash outflows over time.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument to present value.

Internal Rate

Likely referring to the Internal Rate of Return (IRR), which is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.