Table 11-1 Consider the Town of Anywhere with Only Three Residents, Mary

question 123

Multiple Choice

Table 11-1
Consider the town of Anywhere with only three residents, Mary, Bill, and Tricia. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each resident's willingness to pay for each acre of the park.

-Refer to Table 11-1.Suppose the cost to build the park is $16 per acre.How large should the park be to maximize total surplus from the park in Anywhere?

• A) 2 acres
• B) 3 acres
• C) 4 acres
• D) 5 acres

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Definitions:

F Statistic

A ratio used in the analysis of variance (ANOVA) to determine whether significant differences exist between the means of three or more groups.

Two-factor ANOVA

A statistical test used to analyze the difference between group means when there are two independent variables.

Interaction

The influence that variables have on each other within a statistical model or real-world scenario.

Factorial Experiment

An experimental strategy that involves systematically varying all possible combinations of levels across multiple factors to determine their effects on a response variable.