On Hot Summer Days,electric-Generating Capacity Is Sometimes Stretched to the Limit.At

question 6

Multiple Choice

On hot summer days,electric-generating capacity is sometimes stretched to the limit.At these times,electric companies sometimes ask people to voluntarily cut back on their use of electricity.What would an economist recommend

• A)It would be more efficient for every electric customer to have an incentive to prevent the system from overloading.
• B)It would be more efficient for the electric company to raise its rates for electricity at peak times.
• C)It would be more efficient to have a lottery to decide who must cut back their use of electricity at peak times.
• D)It would be more efficient to enforce rotating blackouts so everyone cuts their usage of electricity by the same amount.

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Definitions:

Process Range Chart

A control chart that monitors the dispersion or variability of a process, helping to ensure a process is stable and predictable over time.

Variation

Variation refers to the degree of change or difference in a condition or process, often analyzed to improve quality and performance in manufacturing.

Statistical Process Control

A method of quality control which uses statistical methods to monitor and control a process.

Small Samples

Investigations or analyses that involve a relatively small number of observations or data points, which may require special statistical techniques to infer conclusions.