Exhibit 16-4

question 2

Multiple Choice

Exhibit 16-4.The following data shows the cooling temperatures of a freshly brewed cup of coffee after it is poured from the brewing pot into a serving cup.The brewing pot temperature is approximately 180º F;see http://mathbits.com/mathbits/tisection/statistics2/exponential.htm For the assumed exponential model ln(Temp) = β₀ + β₁Time + ε,the following Excel regression partial output is available. Refer to Exhibit 16-4.What is the percentage of variations in ln(Temp) explained by Time?

• A)45.48%
• B)97.01%
• C)1.40%
• D)46.88%

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Definitions:

Mutually-Agreeable Trade

A transaction or trade that both parties involved consent to and believe will benefit them.

Opportunity Cost

The expense incurred by not selecting the second-best option when deciding among various choices.

Willingness to Pay

The maximum amount an individual is prepared to expend on a good or service to procure it.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the amount they actually receive.