Suppose there are 100 potential buyers of a used textbook and 100 potential sellers. Buyers value a high quality used textbook at $80 and a low quality used textbook at $40. There are 3 types of sellers: 30 of them are selling a low quality textbook and are willing to sell at any price above $20, 20 of them are selling a high quality textbook and are willing to sell at any price above $50, and 50 of them are selling a high quality textbook and are willing to sell at any price above $70. Buyers cannot differentiate between sellers of high quality textbooks and sellers of low quality textbooks. What percentage of used textbooks actually sold will be low quality?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Suppose there are 100 potential buyers of a used textbook and 100 potential sellers. Buyers value a high quality used textbook at $80 and a low quality used textbook at $40. There are 3 types of sellers: 30 of them are selling a low quality textbook and are willing to sell at any price above $20, 20 of them are selling a high quality textbook and are willing to sell at any price above $50, and 50 of them are selling a high quality textbook and are willing to sell at any price above $70. Buyers cannot differentiate between sellers of high quality textbooks and sellers of low quality textbooks.
What percentage of used textbooks actually sold will be low quality?
(Note: Don’t add the percentage sign when inputting your answer.)
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