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ECON 2843
Name
KEY
Quiz 2
Section Time
Fall 2006
ID #
Students must
show all work
on problems that involve calculation.
Questions 1  2 refer to the following table.
In February 2002, the Argentine peso lost 70% of its
value compared to the U.S. dollar. This devaluation drastically raised the price of imported
products.
According to an AC Nielsen survey, some Argentinean consumers changed to less
expensive brands, and some of them changed the number of products that they purchased.
The
results are given in the table.
Brands Purchased
same
changed
Total
Number of
Products Purchased
Fewer
.025
Same
.035
.205
More
.06
.02
Total
.88
1. What is the probability that a randomly selected consumer will purchase more products than
before the devaluation?
a.
.025
b.
.08
*
c.
.68
d.
.92
e.
.98
2. If a randomly selected worker was found to have changed brands, then what is the probability
that he/she will purchase fewer products than before?
a.
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 Spring '08
 HUDGINS

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