1. A company make profits of $22,000 on each of its fivelow end products $50,000 for each of the two mid end ones and$270,000 from one top product. The number of products contributingless than the mean profit is

a) 4 b) 7 c) 5 d) 6 e) 0

2. Of most of the prices in a large data set are ofapproximately the same magnitude except for a few observations thatare quite a bit larger, how would the mean and median of the dataset compare and what shape would a histogram of the data sethave?

a) the mean would be equal to the median and the histogram wouldbe symmetrical

b) the mean would be smaller than the median and the histogramwould be skewed with a long right tail.

c) the mean would be larger than the median and the histogramwould be skewed with a long left tail

d) the mean would be larger than the median and the histogramwould be skewed with a long right tail

e) the mean would be smaller than the median and the histogramwould be skewed with a long left tail

3. What are the assumptions behind the two pricingstrategies and what are their strength and weakness?

4. Suppose a university decides to raise tuition fees toincrease the total revenue it receives from students. This strategywill work if the demand for education at the universityis..

a) unit elastic b) inversely related to price c) elastic d)inelastic e) perfectly elastic