Monica, a Chef at a 5 -Star Restaurant Makes Eight

question 38

Multiple Choice

Monica, a chef at a 5 -star restaurant makes eight different desserts. She wants to see if th customers prefer any specific dessert to another. She keeps a record of desserts ordered o course of several weeks, and the results are summarized in the table below.
$\begin{array} { l c } \text { Dessert } & \text { Frequenc } \\ \text { Chocolate Mousse } & 25 \\ \text { Baked Alaska } & 12 \\ \text { Orange Cheesecake } & 23 \\ \text { Caramel Flan } & 32 \\ \text { Banana Brulee } & 40 \\ \text { Mississippi Mud Pie } & 20 \\ \text { Ricotta Cannoli } & 38 \\ \text { French Walnut Torte } & 34 \end{array}$
Compute the test value.

• A) 17.86
• B) 23.21
• C) 16.36
• D) 9.14

---

Definitions:

Risk-loving

A preference or inclination to undertake investment with uncertain outcomes, often with the potential for significant gains.

Utility

A measure of satisfaction, usefulness, or value that a consumer derives from consuming a good or service.

Decreasing Rate

A situation or condition in which the rate at which something occurs or is processed diminishes over time.

Expected Utility

A theory in economics that calculates the utility expected from different choices, aiming to predict an individual's preferences under uncertainty.