Table 11-5 A Small Island Off the Coast of Cape Cod Contains

question 288

Multiple Choice

Table 11-5
A small island off the coast of Cape Cod contains two restaurants and two retail stores. Tourists need to take a ferry boat to reach the island, but with a recent slowdown in the economy, tourists are less willing to pay for the boat ride to visit the island. The owners of the restaurants and stores on the island - Restaurants 1 and 2, and Stores A and B - think that if tourists could ride the ferry for free, they would be happy to visit the island, eat and shop. The business owners are considering contributing to a pool of money that will be used to pay for roundtrip ferry service each day. The table represents their willingness to pay, that is, the maximum amount that each business owner is willing to contribute, per day, to pay for each ferry trip.
-Refer to Table 11-5. Suppose the cost to run the ferry for each roundtrip is $1,000 per day and the 4 business owners have agreed to split the costs of the ferry trips equally. How many ferry trips would the owner of Store A prefer to have?

• A)0
• B)1
• C)2

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Definitions:

Uniform Distribution

A statistical distribution where all outcomes are equally likely over a specified range.

Random Variable

A numeric variable influenced by the randomness of certain phenomena.

Probability

A measure of the likelihood that a particular event will occur, often expressed as a number between 0 and 1.

Uniform Distribution

A distribution of probabilities where each possible outcome is equally probable.