Q 61

How would you characterize a consumer who is risk loving?
A) A consumer who may accept a risky prospect even if the expected gain is negative.
B) A consumer who demands a positive expected gain as compensation for taking risk.
C) A consumer who completely ignores risk and makes his or her decisions solely on the basis of expected values.
D) None of the above.

Q 62

Which of the following statements is the most accurate about a binomial random variable?
A) It has a bell-shaped distribution.
B) It is a continuous random variable.
C) It counts the number of successes in a given number of trials.
D) It counts the number of successes in a specified time interval or region.

Q 63

It is known that 10% of the calculators shipped from a particular factory are defective.What is the probability that exactly three of five chosen calculators are defective?
A) 0.00729
B) 0.0081
C) 0.081
D) 0.03