Tom and Jerry Have One Day to Work, but Two

question 28

Multiple Choice

Tom and Jerry have one day to work, but two tasks to focus on: building chairs and tables. If Tom spends all day building chairs, he will make 16 chairs. If he instead devotes his day to building tables, Tom will make 4 tables. If Jerry spends his day building chairs, he will make 14 chairs; if he spends the day building tables, he will make 7 tables. After looking at the production possibilities for both Tom and Jerry, what can we surmise?

• A) Tom has an absolute advantage at producing both chairs and tables.
• B) Jerry has an absolute advantage at producing both chairs and tables.
• C) Tom has an absolute advantage at producing chairs and Jerry has an absolute advantage at producing tables.
• D) Tom has an absolute advantage at producing tables and Jerry has an absolute advantage at producing chairs.

---

Definitions:

P-Value

The probability of observing results as extreme as those obtained during a statistical hypothesis test, assuming the null hypothesis is true.

Null Hypothesis

A statement used in hypothesis testing that indicates no effect or no difference, and it's the assumption that the experiment aims to test against.

Test Statistic

A numerical value calculated from a sample data set. It is used in statistical hypothesis testing to determine how extreme the observed data is compared to the null hypothesis.

Standard Error

A statistical measure that quantifies the amount of variability or uncertainty in a sample statistic estimate of a population parameter.