The federal trade commission investigated possible price fixing by a group of co

Question

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

Explanation / Answer

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]

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.