The Price of a Bagel with Cream Cheese Equals $2

question 12

Multiple Choice

The price of a bagel with cream cheese equals $2 and the price of a donut equals 50 cents.The marginal utility to Joaquin of the last bagel consumed equals 16 utils.If Joaquin maximizes his satisfaction by consuming both bagels and donuts,we would expect the marginal utility of the last donut consumed to equal:

• A) 20 utils.
• B) 12 utils.
• C) 8 utils.
• D) 4 utils.

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Definitions:

Chi-square Test for Independence

A statistical method employed to assess if a significant relationship exists between two variables of categorical type.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, typically defined as the sample size minus the number of parameters estimated.

Contingency Table

A table often used in statistics to display the frequency distribution of variables, showing the number of observations for each combination of categories.

Qualitative Variables

Variables that express categorical data and can be described or classified by qualities rather than numerical measures.