Exhibit 5-5 AMR Is a Computer-Consulting Firm. the Number of New Clients

question 140

Multiple Choice

Exhibit 5-5
AMR is a computer-consulting firm. The number of new clients that they have obtained each month has ranged from 0 to 6. The number of new clients has the probability distribution that is shown below.
-Refer to Exhibit 5-5. The standard deviation is

• A)1.431
• B)2.047
• C)3.05
• D)21

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Definitions:

Comparative Advantage

The ability of a party to produce a particular good or service at a lower marginal and opportunity cost over another.

Absolute Advantage

The ability of a country or entity to produce a good or service more efficiently than its competitors.

Absolute Advantage

Refers to the ability of a country, company, or individual to produce a good or service at a lower cost per unit than any competitor using the same amount of resources.

Comparative Advantage

The ability of a country or firm to produce a certain good or service at a lower opportunity cost than others, leading to more efficient trade possibilities.