If a vendor has correctly used marginal analysis to select their stock levels for the day (as in the newsperson problem), and the profit resulting from the last unit being sold (cu) is $0.90 and the loss resulting from that unit if it is not sold (co) is $0.50, which of the following is the probability of the last unit being sold?

(a) greater than 0.357
(b) greater than 0.400
(c) greater than 0.556
(d) greater than 0.678
(e) none of the above

Option (A) is correct.

Explanation:

Given that,

Profit resulting from the last unit being sold (Cu) = $0.90

Loss resulting from that unit if it is not sold (Co) is $0.50

Probability of last unit remaining unsold P(D < Q):

= Cu ÷ (Cu+Co)

= 0.9 ÷ (0.9 + 0.5)

= 0.6429

Probability of last unit bring sold P(D > Q):

= 1 - P(D < Q)

= 1 - 0.6429

= 0.3571

answer: b. false

the staff is a set of five horizontal lines and four spaces which represent a different musical pitch. the lines and the spaces are numbered from bottom to top, the bottom line is the first line and the fifth line is the line on the top. the notes on the top of the staff (fifth line) have a higher pitch than a note at the bottom of the staff.