Homework SourseThe federal trade commission investigated possible price fix
The federal trade commission investigated possible price fixing by a group of corporations. In terms of prices across corporations, what evidence would they accept as proof of price fixing?
A) A high mean and a large stardard deviation
B) A high median and a high mean
C) A small variance and a large standard deviation
D)A high mean and a small stardard deviation
The federal trade commission investigated possible price fixing by a group of corporations. In terms of prices across corporations, what evidence would they accept as proof of price fixing?
A) A high mean and a large stardard deviation
B) A high median and a high mean
C) A small variance and a large standard deviation
D)A high mean and a small stardard deviation
A) A high mean and a large stardard deviation
B) A high median and a high mean
C) A small variance and a large standard deviation
D)A high mean and a small stardard deviation
Solution
If price is being fixed, then you would expect them to choose prices favorable to them (high price) CONSISTENTLY.
Thus, a high price means a HIGH MEAN.
Consistently doing so, it produces, a SMALL VARIANCE/standard deviation.
Thus, OPTION D: A high mean and a small stardard deviation [answer, D]
