Consider the Following to Answer the Question(s) Below

question 22

Multiple Choice

Consider the following to answer the question(s) below:
To determine whether the tip left at the end of a meal is related to the size of the total bill at their restaurant, Chez Michelle, data were gathered for 10 customers. The data and summary statistics are shown below.

-The residual for the estimated tip for a total bill of $120 would be

• A) $5.13
• B) $19.00
• C) 0
• D) -$11.45
• E) $9.38

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Definitions:

Income Level

A measure of the amount of money earnings or revenue a person or entity receives within a specific time period.

Total Utility

The overall satisfaction or benefit a consumer receives from consuming a specific quantity of goods or services.

Income Distribution

How a nation’s total GDP is distributed amongst its population, influencing economic inequality.

Marginal Utility

The added satisfaction a consumer gains from consuming one more unit of a good or service.