The Relationship Between Labor Usage and Output at the Local

question 91

Multiple Choice

The relationship between labor usage and output at the local coffee shop is summarized in the table below.The price of a cup of espresso is $1.25 and no other inputs are required. $$\begin{array} { c c } \begin{array} { c c } \text { Labor } \\\underline { \text { Input }}\end{array} & \begin{array} { c } \text { Cups of } \\\underline { \text { espresso }}\end{array} \\ 0 & 0 \\1 & 25 \\2 & 45 \\3 & 60 \\4 & 70 \\5 & 75\end{array}$$
The benefit to the coffee shop of hiring the fifth worker is

• A)70 cups of espresso.
• B)75 cups of espresso.
• C)$93.75.
• D)$6.25.

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Definitions:

Sample Size

The number of observations or data points collected in a statistical study.

Central Limit Theorem

A statistical theory that states the distribution of the sample mean of a large enough number of independent, identically distributed variables will be approximately normal, regardless of the population's distribution.

Sample Means

The average value of a sample, which is a subset of a larger population, used to estimate the population mean.

Normally Distributed

A statistical distribution where data points are symmetrically distributed around the mean, forming a bell-shaped curve.