A Consumer Is Willing to Pay a Maximum of $5

question 95

Multiple Choice

A consumer is willing to pay a maximum of $5 for the first pretzel,$4 for the second pretzel,$3 for the third pretzel,$2 for the fourth pretzel,$1 for the fifth pretzel,and nothing for the sixth pretzel.If the price per unit of pretzel is $2,calculate the total benefit of the consumer.

• A)$6
• B)$14
• C)$5
• D)$8

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Definitions:

Standard Deviation

An indicator of the degree to which a collection of numbers diverges from the average, showing the extent of variability or spread among the values.

Process Mean

The average value of a set of measurements of a process, indicating the central tendency of the process performance.

Max Error

The maximum possible error or deviation from the true value or accepted standard.

Confidence

A belief in one's abilities or qualities, often reflecting a sense of self-assurance.