Activity Z Has Estimates a = 5,b = 10,m =

question 8

Multiple Choice

Activity Z has estimates a = 5,b = 10,m = 7;activity X has estimates a = 4,b = 11,m = 6;and activity Y has estimates a = 3,b = 12,m = 8.Which of the following statements is best?

• A)Activity X is longer than Activity Y.
• B)Activity X has a higher standard deviation than Activity Z.
• C)Activity Z is shorter than Activity Y.
• D)Activity Y has a smaller variance than Activity Z.

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Definitions:

Luxury Good

A product that is not necessary for basic survival but is deemed as highly-desirable within a culture or society, often associated with wealth or quality.

Income Elasticity

A measure of how the demand for a good or service changes in response to changes in consumer income.

Homothetic Preferences

A situation in consumer theory where a consumer's preference structure can be represented by a utility function that is proportionally scalable.

Engel Curve

A graphical representation that shows the relationship between income and the demand for a good or service, keeping all other factors constant.