Which Level of Measurement Is Appropriate for the Independent and Dependent

question 18

Multiple Choice

Which level of measurement is appropriate for the independent and dependent variables when using a chi-square analysis?

• A)nominal
• B)ordinal
• C)interval
• D)ratio

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Definitions:

Reservation Price

The maximum or minimum price at which a consumer is willing to buy or sell a good or service.

Utility Function

A representation in economics that maps a set of goods and services into a numerical level of utility (satisfaction or happiness) that a consumer derives from those goods and services.

Good 1

Typically refers to a specific item or category of goods within an economic model, where multiple goods are being considered for analysis or comparison.

Revenue-maximizing Price

The price level at which a company can generate the maximum total revenue, balancing between price per unit and the quantity sold.