Consider the Following to Answer the Question(s) Below

question 32

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.

-If a residual plot exhibits a curved pattern in the residuals, this means that

• A) The relationship between x and y is also curved.
• B) The residuals are not normally distributed.
• C) x and y are positively correlated.
• D) The residuals have a constant variance.
• E) The relationship between x and y is linear.

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Definitions:

Tariff

A financial charge instituted by a government on goods exported from or imported into a country.

Absolute Advantage

The ability of a country, individual, or firm to produce a good or service at a lower cost per unit than other producers.

Trade Benefits

Advantages countries gain from engaging in international trade, such as increased economic growth, diversification, and access to new markets.

Comparative Advantage

An economic theory stating that countries or entities benefit from specializing in producing goods where they have lower opportunity costs, leading to more efficient global production.