THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 110

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A consumer group wanted to examine how long different life bulbs last.They selected three different light bulbs (60 watt,75 watt and 100 watt) from four different manufacturers.They generated the following statistics from the data.

-What is the value of "C"?

• A)6
• B)4
• C)2

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Definitions:

Efficient Allocation

An economic condition where resources are distributed in a way that maximizes the welfare of society, ensuring that every good or service is produced up to the point where the last unit provides a benefit equal to the cost of producing it.

Risk

Uncertainty about future outcomes.

Risk-Averse

A description of an individual or organization that prefers to avoid uncertainty and is willing to sacrifice some potential gain to avoid risk.

Expected-Utility Maximizer

An economic concept referring to an individual who chooses between uncertain prospects by comparing their expected utilities.