To Compare the Cost of Three Shipping Methods,a Random Sample

question 124

Multiple Choice

To compare the cost of three shipping methods,a random sample of four shipments is taken for each of three firms.The cost per shipment is shown below. In a one-factor ANOVA,degrees of freedom for the between-groups sum of squares will be:

• A) 11.
• B) 3.
• C) 2.

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Definitions:

Allocative Efficiency

Occurs when resources are distributed in a way that maximizes the net benefit to society.

Consumer Surplus

The difference between the maximum price a consumer is (or consumers are) willing to pay for an additional unit of a product and its market price; the triangular area below the demand curve and above the market price.

Net Benefit

Net benefit refers to the total positive effects or advantages of a decision or action, minus any costs or negative effects associated with it.

Creative Destruction

A process where new innovations cause the demise of older industries or technologies, leading to economic growth and development.