On Average Each Year, About 7 Percent of All Firms

question 13

Multiple Choice

On average each year, about 7 percent of all firms in the United States are new and 1 percent go out of business.According to the text, luck may play a role.Which of the following reasons for failure might be attributable to luck?

• A)An individual undertakes a very risky venture so that his product is first to market.
• B)An executive fails to undertake an investment that would have yielded great success.
• C)An executive focuses on the incorrect objective.
• D)An executive undertakes an investment just prior to a major natural catastrophe that destroys the firm's assets.
• E)An executive fails to perceive what customers really want.

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Definitions:

Correlation

A statistical measure that describes the extent to which two variables change together.

Fuel-Efficient Vehicles

Vehicles designed to use less fuel for the same distance traveled compared to average vehicles, reducing operating costs and environmental impact.

Gas Guzzlers

Refers to vehicles that consume fuel inefficiently, often associated with larger, less fuel-efficient cars and trucks.

Selection Bias

a distortion in statistical analysis resulting from the method of collecting samples.