Clarissa's Utility Function Is U(r, Z)= Z + 120r -

question 72

Multiple Choice

Clarissa's utility function is U(r, z) = z + 120r - r², where r is the number of rose plants she has in her garden and z is the number of zinnias.She has 250 square feet to allocate to roses and zinnias.Roses each take up 4 square feet and zinnias each take up 1 square foot.She gets the plants for free from a generous friend.If she acquires another 100 square feet of land for her garden and her utility function remains unchanged, she will plant

• A)99 more zinnias and some more roses.
• B)20 more roses and 20 more zinnias.
• C)25 more roses and no more zinnias.
• D)100 more zinnias and no more roses.
• E)None of the above.

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Definitions:

Coefficient of Determination

A measure in statistical models that indicates the proportion of the variance in the dependent variable predictable from the independent variables, often symbolized as \(R^2\).

Multicollinearity

A statistical phenomenon in which predictor variables in a regression model are highly correlated, potentially leading to difficulties in estimating separate effects on the dependent variable.

Dependent Variable

A variable in an experiment or model whose value is affected by changes in other (independent) variables.

Independent Variables

Variables in a statistical or mathematical model that are manipulated or selected by the researcher to determine their effect on dependent variables.