Use the Following to Answer Question

question 302

Multiple Choice

Use the following to answer question:
-(Table: Utility from Pizza and Beer) Look at the table Utility from Pizza and Beer. At All-Sports Bar, a bottle of beer costs $4; a slice of pizza costs $2. Denard has $10 to spend on beer and pizza. To maximize his utility, Denard will consume _____ slice(s) of pizza and _____ bottle(s) of beer.

• A) 5; no
• B) 3; 1
• C) 1; 2
• D) 4; 3

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Definitions:

Binomial Random Variable

A type of random variable that represents the number of successes in a fixed number of binary experiments.

Binomial Experiment

A statistical experiment that fits the binomial distribution; characterized by fixed number of trials, two possible outcomes per trial, independent trials, and constant probability of success.

Trials

In statistics and research, trials refer to individual attempts or experiments conducted to test a hypothesis or observe outcomes.

Poisson Distribution

A discrete frequency distribution that expresses the probability of a given number of events happening in a fixed interval of time or space.