Textbook prices have a seasonal structure on Ebay. At the end of a term, the supply of used books outstrips demand, and the price is lower. Near the start of a term, many students are looking for books, and the price is higher. Suppose we can classify sales for a particular chemistry textbook into these two time periods and an "other" time period in the proportions shown below. We have also listed the average price the textbook sells for in each of these three time periods Start-of-term End-of-term Sales proportion Average price 0.45 $82.52 0.31 $49.12 Other 0.24 $65.23 For example, about 45% of Ebay auctions for this chemistry textbook occur at the start of the term and the books sell for an average of $82.52 during this time. Using the information above, compute the average price of the textbook over all seasons. (Do not put a dollar sign in your answer.)
Textbook prices have a seasonal structure on Ebay. At the end of a term, the supply of used books outstrips demand, and the price is lower. Near the start of a term, many students are looking for books, and the price is higher. Suppose we can classify sales for a particular chemistry textbook into these two time periods and an "other" time period in the proportions shown below. We have also listed the average price the textbook sells for in each of these three time periods Start-of-term End-of-term Sales proportion Average price 0.45 $82.52 0.31 $49.12 Other 0.24 $65.23 For example, about 45% of Ebay auctions for this chemistry textbook occur at the start of the term and the books sell for an average of $82.52 during this time. Using the information above, compute the average price of the textbook over all seasons. (Do not put a dollar sign in your answer.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Textbook prices have a seasonal structure on Ebay. At the end of a term, the supply of used books outstrips
demand, and the price is lower. Near the start of a term, many students are looking for books, and the
price is higher. Suppose we can classify sales for a particular chemistry textbook into these two time
periods and an "other" time period in the proportions shown below. We have also listed the average price
the textbook sells for in each of these three time periods
Start-of-term
End-of-term
0.31
$49.12
Sales proportion
Average price
0.45
$82.52
acti
For example, about 45% of Ebay auctions for this chemistry textbook occur at the start of the term and the
books sell for an average of $82.52 during this time. Using the information above, compute the average
price of the textbook over all seasons. (Do not put a dollar sign in your answer.)
sto
to
Other
0.24
$65.23
forur
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