Question

Anytown households that earn more than $75,000 tend to buy sports equipment, while households that earn less than $75,000 tend to buy TVs.

Which new business would be most likely to succeed?

A. a car dealership
B. an electronics store
C. an office supply store
D. a sporting goods store

Answer 1

The correct answer is B) an electrical store.

Anytown households that earn more than $75,000 tend to buy sports equipment, while households that earn less than $75,000 tend to buy TVs.

The new business that would be most likely to succeed is an electronics store.

This is so because there is more population that earns less than $75,000 and they are people that like to spend their money on buying electronics such as TVs. So a new business dedicated to selling electronics (TVs, computers, mobile phones, and so on) could have a great opportunity with this population. More people would be attracted to visit the shop location or buying online.

Answer 2

The correct answer is "B".

"Anytown" has a total population of 100,000 households. 57,500 of these households have at least an annual income of $ 50,000. Basing ourselves on the information provided in the question, families that are capable of buying sporting goods will probably also need a TV. Therefore, 57.5 % of the total population of households who can buy sporting goods will also buy a TV. There could be more potential buyers of TVs in the households which earn less than $ 50,000.