Table 11-1 Consider the Town of Anywhere with Only Three Residents, Mary

question 332

Multiple Choice

Table 11-1
Consider the town of Anywhere with only three residents, Mary, Bill, and Tricia. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each resident's willingness to pay for each acre of the park.

-Refer to Table 11-1.Suppose the cost to build the park is $15 per acre and that the residents have agreed to split the cost of building the park equally.If the residents vote to determine the size of park to build,basing their decision solely on their own willingness to pay (and trying to maximize their own surplus) ,what is the largest park size for which the majority of residents would vote "yes?"

• A) 1 acre
• B) 2 acres
• C) 3 acres
• D) 4 acres

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Definitions:

Trend Line

A line drawn through data points in a scatter plot to model the direction or pattern of the data, commonly used in time series data to visualize trends.

Quarterly Data

Information or statistics collected at three-month intervals, often used in business and finance to track performance and trends.

Seasonal Components

Patterns within time series data that occur regularly at specific intervals, such as daily, weekly, monthly, or annually, influenced by seasonal factors.

Moving Averages

A statistical method used to analyze data points by creating series of averages of different subsets of the full data set.