Merkey Motel's Cost Function Based on Guest-Days of Occupancy for Custodial

question 6

Multiple Choice

Merkey Motel's cost function based on guest-days of occupancy for custodial cost is given as: Y = $50,000 + $7.50X.Merkey Motel expects an occupancy level of 10,000 guest days.Merkey Motel's expected total fixed cost is _____.

• A)$7.50
• B)$50,000
• C)$75,000
• D)$105,000

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Definitions:

Independent Variables

The variables that are manipulated or categorised to determine their effect on the dependent variable in an experiment.

Observations

Data collected during an experiment or research that are analyzed to draw conclusions.

Critical Value

A predetermined point on the distribution of a test statistic at which the null hypothesis is rejected if exceeded.

Degrees Of Freedom

The count of distinct values or amounts that can be allocated to a statistical distribution while still adhering to all restrictions.