Zach Has the Following Information to Evaluate-His Current Salary of $76,000

question 6

Multiple Choice

Zach has the following information to evaluate-his current salary of $76,000 versus total revenues of $120,000 and expenses of $72,000 from starting a new business. How much is the opportunity cost associated with staying at his current job?

• A)$76,000
• B)$4000
• C)$48,000
• D)$192,000

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Definitions:

Population Means

The average value of a population parameter.

Sum of Squares

A statistical technique used to measure the variation or dispersion of a set of numbers, calculated by summing the squares of differences from the mean.

Sample Means

The average value of a set of observations, taken from a sample of the population.

Analysis of Variance

A statistical method used to compare the means of three or more samples to find out if at least one is significantly different from the others.