(Table) Based on the Table, Assume That a Consumer Has

question 212

Multiple Choice

(Table) Based on the table, assume that a consumer has a budget of $12, water costs $2 per bottle, and chips cost $3 per bag. Total utility is maximized at ______ utils.
$\begin{array}{l}\hline \quad \quad \quad {\text { Bottled Water }} \quad \quad \quad \quad \quad \quad \quad {\text { Bags of Chips }} \\\begin{array}{|c|c|c|c|}\hline \text { Quantity } & \text { Total Utility } & \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 & 0 & 0 \\\hline 1 & 40 & 1 & 60 \\\hline 2 & 70 & 2 & 90 \\\hline 3 & 90 & 3 & 105 \\\hline 4 & 100 & 4 & 114 \\\hline 5 & 106 & 5 & 120 \\\hline\end{array}\end{array}$

• A) 114
• B) 226
• C) 180
• D) 90

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Definitions:

Random Variation

The unpredictable fluctuation in data points that results from a multitude of unspecified factors.

Process Control Charts

Graphical displays used to monitor the stability and performance of a process over time by plotting various statistics.

P-Charts

Control charts used for monitoring the proportion of defective items in a process over time.

Statistical Process Control (SPC)

A method of quality control which employs statistical methods to monitor and control a process, helping to ensure that it operates at its fullest potential.