Author Question: This chapter talked about the idea of independent events. a. Suppose you draw a card from a ... (Read 93 times)

lindiwe · **on:** Jun 29, 2018

This chapter talked about the idea of independent events.

a. Suppose you draw a card from a standard deck of cards, put that card back in the deck, and draw a second card. Are the events Draw a diamond the first time and Draw a diamond the second time independent events?
b. Suppose you draw a card from a standard deck of cards, you do notput that card back in the deck, and draw a second card. Are the events Draw a diamond the first time and Draw a diamond the second time independent events?

Question 2

Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is 3

A) economic surplus is maximized.
B) the quantity supplied is economically efficient but the quantity demanded is economically inefficient.
C) not enough consumers want to buy pecans.
D) the quantity supplied is less than the economically efficient quantity.

amynguyen1221 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

a. These events are independent. When you put the first card back in the deck you are repeating the first draw. A deck of cards is like a roulette wheel it does not have a memory and so the probability you will draw a diamond the second time is the same whether or not you drew a diamond the first time. There are 13 diamonds in a deck of 52 cards and so the probability of drawing a diamond either the first or second time is 13/52 = 25.
b. These events are not independent. If you draw a diamond the first time then there are 51 cards left including 12 diamonds. Therefore, the probability of drawing a diamond the second time is 12/51 which is about 23.5. If you do not draw a diamond the first time then there are 51 cards left including 13 diamonds. The probability of drawing a diamond the second time in this case is 13/51 which is about 25.5.

Answer to Question 2

D