Suppose That Paul and David Have Utility Functions U =

question 25

Multiple Choice

Suppose that Paul and David have utility functions U = 4A P + O P and U F= A D + 4O D, respectively, where A P and O P are Paul's consumptions of apples and oranges and A D and O D are David's consumptions of apples and oranges.The total supply of apples and oranges to be divided between them is 20 apples and 12 oranges.The fair allocations consist of all allocations satisfying the following conditions.

• A)A_D = A_P and O_D = O_P.
• B)8A_P + 2O_P is at least 92 and 2A_D + 8O_D is at least 68.
• C)4A_P + O_P is at least 92 and 2A_D + 4O_D is at least 68.
• D)A_D + O_D is at least 16 and A_S + O_S is at least 16.
• E)4A_P + O_P is at least A_D + 4O_D and A_D + 4O_D is at least 4A_P + O_P.

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Definitions:

Infinite Population

A theoretical concept where the population size is considered limitless for practical statistical purposes.

Standard Deviation

A measure of the dispersion or spread of a set of numbers, indicating how much deviation exists from the mean of the dataset.

Standard Error

Standard error measures the accuracy with which a sample distribution represents a population, using the standard deviation of the sample means.

Infinite Population

A theoretical concept where the population size is considered to be limitless for the purposes of statistical analysis.