The Runs Test Tests the Goodness of Fit of the Observed

question 99

True/False

The runs test tests the goodness of fit of the observed number of observations in each category to the number expected under specified binomial distribution.

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Definitions:

Economic Variables

Quantitative measures that represent a characteristic of the economy or a part of the economy, influencing or describing economic activity.

Positive Economic Analysis

An objective approach to economics that focuses on describing and explaining economic phenomena without making normative judgments.

Fallacy of Composition

Erroneous view that what is true for the individual (or the part) will also be true for the group (or the whole).

Association

An organization or group of individuals who voluntarily come together to achieve common goals, often representing a profession, industry, or interest.