Suppose Erie Textiles Can Dispose of Its Waste "For Free

question 10

Multiple Choice

Suppose Erie Textiles can dispose of its waste "for free" by dumping it into a nearby river.While the firm benefits from dumping waste into the river,the waste reduces the fish and bird reproduction.This causes damage to local fishermen and bird watchers.At a cost,Erie Textiles can filter out the toxins,in which case local fishermen and bird watchers will not suffer any damage.The relevant gains (in thousands of dollars) and losses for the three parties are listed below. $$\begin{array} { l r c } & \text { With Filter } & \text { Without } \\\text { Gains to Erie } & \$ 200 & \$ 400 \\\text { Fishermen } & \$ 180 & \$ 50 \\\text { Bird Watchers } & \$ 130 & \$ 25\end{array}$$
Refer to the information given above.If Erie Textiles does not install the filter,there will be a net social _____ of _____ (in thousands of dollars) .

• A) loss;$35
• B) gain;$75
• C) loss;$110
• D) gain;$200

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Definitions:

Tukey Multiple Comparison Method

A statistical technique used to find the differences among group means in a situation where there are more than two groups.

Pairwise Means

The average values obtained from every possible pair of groups or treatments in a study, often used in post-hoc analysis following ANOVA.

Population Means

The average value of a particular characteristic in a population.

Normality

A property of a dataset suggesting that it follows a normal or Gaussian distribution.