Pat Can Either Drive to Work, Which Takes Half an Hour

question 12

Multiple Choice

Pat can either drive to work, which takes half an hour and uses $1.50 worth of gas, or take the bus, which takes an hour and costs $1.00. How should Pat get to work?

• A) Pat should always take the bus because it costs $0.50 less.
• B) Pat should always drive because it saves half an hour.
• C) Pat should drive if saving a half hour is worth $0.50 or more.
• D) Pat should take the bus if a half hour of time is worth $0.50 or more.

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Definitions:

Spearman Correlation

A measure of rank correlation, independent of parametric assumptions, which determines how accurately a monotonic function can depict the relationship between two variables.

Sample Statistic

A numerical measurement describing some aspect of a sample taken from a population.

Gross Revenue

The total amount of revenue generated by a business before deductions for expenses are made.

Hypotheses Tests

A statistical method that is used to decide whether the data at hand sufficiently supports a particular premise or hypothesis.