The Hoffmans Were Having Their Home Remodeled by All-Right Contractors

question 6

Multiple Choice

The Hoffmans were having their home remodeled by All-Right Contractors. The roof had to be removed in order to build the second story the Hoffmans had contracted and designed to build. After All-Right had removed the roof, but before a covering was placed over the exposed half of the home, All-Right's foreman said the job would cost an additional $12,500. The Hoffmans refused to agree to the additional fees and All-Right's foreman said, "Suit yourselves. Looks like rain for the next day or two," and left. The Hoffmans called All-Right and agreed to pay the $12,500 extra and went in to sign the paperwork. Which of the following statements is true?

• A)The contract for the additional $12,500 is valid and binding.
• B)The contract for the additional $12,500 is invalid because of duress.
• C)The contract was not valid because of duress, but the Hoffmans signed anyway - so there is a valid and enforceable agreement.
• D)None of the above

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Definitions:

Bootstrap

A statistical method that involves resampling a single dataset to create many simulated samples, used in assessing variability.

Mean

The average of a set of numbers, calculated by dividing the sum of these numbers by the count of numbers in the set.

Bootstrap Estimates

Bootstrap estimates refer to statistical estimates obtained by repeatedly sampling, with replacement, from a data set to assess the distribution of an estimator.

Sampling Distribution

The chance distribution linked to a specific statistic, emanating from a randomly selected sample.