We randomly select 100 Pell grant recipients from two states. State A is a relatively small state with approximately 4,000 Pell grant recipients. State B is a large state with approximately 200,000 Pell grant recipients. Suppose that the mean and standard deviation in individual Pell grants is approximately the same for both states: µ = $2,600 and σ = $800.

For which state is the sample mean most likely to be within $80 of $2,600?

A. State A because the sample represents a larger segment of this small population.
B. State B because there is less variability in larger populations so estimates from samples are more accurate.
C. Equally likely because σ=$800 for both states.

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?