A Taste Test of Randomly Selected Students Was Conducted to See

question 67

Multiple Choice

A taste test of randomly selected students was conducted to see if there was a difference in preferences among four popular drinks. The following table shows the frequency of responses: $$\begin{array} { | l | c | c | c | c | } \hline \text { Beverage } & \text { Coke } & \text { Pepsi } & \text { A\&W Root Beer } & \text { Dr Pepper } \\\hline \text { Frequency } & 51 & 66 & 43 & 40 \\\hline\end{array}$$ Using ? = .025, the critical value of the test you would use in determining whether the preferences are the same among the drinks is:

• A)5.991.
• B)7.378.
• C)9.348.
• D)11.07.

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Definitions:

Utility Function

A mathematical model in economics that represents how different quantities of goods or services can provide satisfaction to consumers.

Income

The reward garnered over time, generally in a consistent pattern, from occupational or investment sources.

Expected Utility Function

A concept in economics that predicts the utility or satisfaction a rational individual expects to receive from different outcomes, used in decision making under uncertainty.

Sure Payment

A guaranteed payment, often referring to financial transactions where the payer is obligated to pay a certain amount.