Suppose That Four Land Owners,A,B,C,and D,own Adjacent Lots

question 130

Multiple Choice

Suppose that four land owners,A,B,C,and D,own adjacent lots.Recently,a pool of oil was discovered that is under all four lots but does not extend beyond the four lots.Below is information on the relationship between number of oil wells,output per well and revenue per well.
-Refer to the information above.When the marginal cost of drilling a well is $94,each land owner drills __________ wells and experiences an output of __________ barrels of oil per day per well.

• A) 8;37
• B) 2;95
• C) 1;100
• D) 2;an unknown number of
• E) 8;95

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Definitions:

Proportions

A statistical measure that describes the size of a part in relation to the whole, often expressed as a fraction or percentage.

Chi-squared Goodness-of-fit Test

A statistical test used to determine whether sample data fits a population with a specified distribution.

Test Statistic

A value calculated from sample data during a hypothesis test. It is used to determine whether to reject the null hypothesis.

Chi-squared

A statistical test used to determine if there is a significant difference between observed frequencies and expected frequencies in categorized variables.