Exhibit 11-5
the Table Below Gives Beverage Preferences for Random

question 29

Multiple Choice

Exhibit 11-5
The table below gives beverage preferences for random samples of teens and adults.
$\begin{array}{lrrr}&\text { Teens}&\text { Adults }&\text {Total }\\\text { Coffee } & 50 & 200 & 250 \\\text { Tea } & 100 & 150 & 250 \\\text { Soft Drink } & 200 & 200 & 400 \\\text { Other } & 50 & 50 & 100\\400&400&600&1,000\end{array}$ We are asked to test for independence between age i.e., adult and teen) and drink preferences.
-Refer to Exhibit 11-5. With a .05 level of significance, the critical value for the test is

• A) 1.645
• B) 7.815
• C) 14.067
• D) 15.507

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Definitions:

Marginal Revenue Product

The additional revenue a firm gains from employing one more unit of input, holding all other inputs constant.

Output

The amount of goods or services produced by a company, industry, or economy within a specified period.

Profit-Maximizing

A strategy where a firm determines the price and production level that generates the highest possible profit.

MRP

The additional revenue a firm gains from hiring an additional unit of input, such as labor, in the production of goods.