Exhibit 6-6 Marginal Utility for Data for Clothes and Amusement

question 148

Multiple Choice

Exhibit 6-6 Marginal utility for data for clothes and amusement $$\begin{array} { | c | c | c | } \hline \text { Quantity } & \text { Clothes } & \text { Amusement } \\\hline 1 & 15 & 20 \\2 & 13 & 18 \\3 & 10 & 15 \\4 & 8 & 12 \\5 & 6 & 10 \\\hline\end{array}$$
-Refer to Exhibit 6-6. Clothes and amusements are priced at $10 each. If you had a budget of $50, which of the following combinations of goods would you buy?

• A) 4 units of clothes and 1 unit of amusement.
• B) 3 units of clothes and 2 units of amusement.
• C) 2 units of clothes and 3 units of amusement.
• D) 1 unit of clothes and 4 units of amusement.
• E) 5 units of clothes and 5 units of amusement.

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Definitions:

Scatterplot

A visual diagram that illustrates the connection between two numerical variables.

Quantitative Variables

Variables that express numerical amounts, with meaningful mathematical operations possible on their values.

Covariance

A statistical measure indicating the direction of the linear relationship between two variables; can be positive, negative, or zero.

Best-Fitting Regression Line

The line that most accurately represents the relationship between the dependent and independent variables in regression analysis, minimizing the discrepancies between observed and predicted values.