Ignoring Twins and Other Multiple Births,assume Babies Born at a Hospital

question 80

Multiple Choice

Ignoring twins and other multiple births,assume babies born at a hospital are independent events with the probability that a baby is a boy and the probability that a baby is a girl both equal to 0.5.What is the probability that at least one of the next three babies is a boy?

• A)0.125
• B)0.333
• C)0.750
• D)0.875

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Definitions:

Limit-Pricing Strategy

A pricing strategy used by monopolies or dominant firms to set prices low enough to deter entry by potential competitors.

Oligopolists

Firms operating in an oligopoly, a market structure characterized by a few dominant players, which can influence prices and market practices.

Marginal Cost

The additional financial burden incurred when one more unit of a good or service is produced.

Positive-Sum Game

In game theory, a game in which the gains (+) and losses (−) add up to more than zero; one party’s gains exceed the other party’s losses. A strategic interaction (game) between two or more parties (players) in which the winners’ gains exceed the losers’ losses so that the gains and losses sum to something positive.