Use the Following to Answer Questions

question 73

Multiple Choice

Use the following to answer questions :
You ask 100 persons what color of car they like the most.The table below lists the observed frequencies for such a survey.

-The null hypothesis for the goodness-of-fit test is that 10% of all persons like black cars,25% like blue cars,20% like red cars,10% like white cars,and 35% like other colors.The significance level is 2.5%.What is the critical value of chi-square?

• A)9.488
• B)11.143
• C)12.833
• D)11.070

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Definitions:

Indifference Curve

A graphical representation showing different combinations of two goods that provide the consumer with equal levels of satisfaction and utility.

Utility Maximizing

The process by which individuals allocate their resources to achieve the highest level of satisfaction possible.

Bundle

A collection of goods or services sold together as a single package, often at a discounted rate compared to purchasing the items separately.

Marginal Utility

The boost in satisfaction or usefulness experienced from consuming another unit of a product or service.