Table 11-6 Consider the City of Widgetapolis with Only Four Residents, John

question 208

True/False

Table 11-6
Consider the city of Widgetapolis with only four residents, John, James, Mary, and Lydia. The four residents are trying to determine how many hours to spend in cleaning up the public lake. The table below shows each resident's willingness to pay for each hour of cleaning. ​
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-Refer to Table 11-6. Suppose the cost to clean the lake is $32 per hour and that the residents have agreed to split the cost of cleaning the lake equally. It would maximize Mary's surplus if 3 hours of cleaning is done.​

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Definitions:

Resamples

The process of drawing repeated samples from a set of data with the aim of estimating a population parameter.

Bootstrap Estimate

A method of statistical inference where sampling distributions of statistics are estimated by sampling with replacement from the original dataset.

Trimmed Mean

A method of averaging that involves removing a specified percentage of the smallest and largest values before calculating the mean.

Bootstrap Distribution

A sampling distribution estimated by resampling with replacement from an observed dataset, typically used to estimate the variability of a statistic.