The Following Table Shows Erica's Utility for Muffins and Grapefruit

question 20

Multiple Choice

The following table shows Erica's utility for muffins and grapefruit.

-Refer to the above information to answer this question.If Erica has a budget of $5 and the price of a muffin is $2 and a grapefruit is $1,what will be her optimal purchase?

• A)0 muffin and 5 grapefruit.
• B)1 muffin and 3 grapefruit.
• C)2 muffins and 1 grapefruit.
• D)3 muffins and 0 grapefruit.
• E)3 muffins and 1 grapefruit.

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Definitions:

Confidence Intervals

A selection of values from statistical samples that has a high chance of including the value of a hidden population attribute.

Population Mean

The average of all the values in a population, representing the central or typical value of the population.

Confidence Interval

A collection of values obtained from statistical samples that is expected to encompass the value of an undetermined population parameter at a given confidence level.

Margin of Error

An expression of the amount of random sampling error in a survey's results, representing the range within which the true population parameter is expected to lie.