If a microchip manufacturer claims that only 4% of his chips are defective, what is the probability that among the 60 chips chosen, exactly three are defective?
If
denotes the probability that the chip is defective, and
the probability that the chip is not defective, then
,
,
, and
.
If a telemarketing executive has determined that 15% of the people contacted will purchase the product, what is the probability that among the 12 people who are contacted, 2 will buy the product?
If S denoted the probability that a person will buy the product, and F the probability that the person will not buy the product, then
,
,
, and
.
In this section, we will develop and use Bayes' Formula to solve an important type of probability problem. Bayes' formula is a method of calculating the conditional probability
from
. The ideas involved here are not new, and most of these problems can be solved using a tree diagram. However, Bayes' formula does provide us with a tool with which we can solve these problems without a tree diagram.
We begin with an example.
Suppose you are given two jars. Jar I contains one black and 4 white marbles, and Jar II contains 4 black and 6 white marbles. If a jar is selected at random and a marble is chosen,
What is the probability that the marble chosen is a black marble?
If the chosen marble is black, what is the probability that it came from Jar I?
If the chosen marble is black, what is the probability that it came from Jar II?
Let
I be the event that Jar I is chosen,
be the event that Jar II is chosen,
be the event that a black marble is chosen and
the event that a white marble is chosen.
We illustrate using a tree diagram.
The probability that a black marble is chosen is
.
To find
, we use the definition of conditional probability, and we get
Similarly,
In parts b and c, the reader should note that the denominator is the sum of all probabilities of all branches of the tree that produce a black marble, while the numerator is the branch that is associated with the particular jar in question.
In economics, a perfect market refers to a theoretical construct where all participants have perfect information, goods are homogenous, there are no barriers to entry or exit, and prices are determined solely by supply and demand. It's an idealized model used for analysis,
When MP₁ becomes negative, TP start to decline.
Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 •
Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of lab
Kelo
Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 •
Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of labour (APL) and marginal product of labour (MPL)
Quantity demanded refers to the specific amount of a good or service that consumers are willing and able to purchase at a give price and within a specific time period. Demand, on the other hand, is a broader concept that encompasses the entire relationship between price and quantity demanded
Ezea
ok
Shukri
how do you save a country economic situation when it's falling apart
Economic growth as an increase in the production and consumption of goods and services within an economy.but
Economic development as a broader concept that encompasses not only economic growth but also social & human well being.
Shukri
production function means
Jabir
What do you think is more important to focus on when considering inequality ?
sir...I just want to ask one question... Define the term contract curve? if you are free please help me to find this answer 🙏
Asui
it is a curve that we get after connecting the pareto optimal combinations of two consumers after their mutually beneficial trade offs
Awais
thank you so much 👍 sir
Asui
In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities, where neither p
Cornelius
In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities,
Cornelius
Suppose a consumer consuming two commodities X and Y has
The following utility function u=X0.4 Y0.6. If the price of the X and Y are 2 and 3 respectively and income Constraint is birr 50.
A,Calculate quantities of x and y which maximize utility.
B,Calculate value of Lagrange multiplier.
C,Calculate quantities of X and Y consumed with a given price.
D,alculate optimum level of output .
the market for lemon has 10 potential consumers, each having an individual demand curve p=101-10Qi, where p is price in dollar's per cup and Qi is the number of cups demanded per week by the i th consumer.Find the market demand curve using algebra. Draw an individual demand curve and the market dema
suppose the production function is given by ( L, K)=L¼K¾.assuming capital is fixed find APL and MPL. consider the following short run production function:Q=6L²-0.4L³ a) find the value of L that maximizes output b)find the value of L that maximizes marginal product