Assuming You Are Testing a Null Hypothesis (Two-Tailed) About the Population

question 41

Multiple Choice

Assuming you are testing a null hypothesis (two-tailed) about the population mean and determining whether to reject the null hypothesis based on the t-stat at the 95% confidence level, which t-stat would warrant rejecting the null hypothesis?

• A) 1.4
• B) -1.4
• C) 3
• D) 1.6

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Definitions:

Limited Usefulness

Refers to the notion that a tool, resource, or piece of information is only beneficial or applicable in certain situations or to a certain extent.

Optimal Quantity

The amount of a good or service that maximizes the net benefit to an individual or society, often considering factors like cost and utility.

Utility-maximizing Consumer

An economic concept where consumers aim to get the greatest utility or satisfaction from their purchases given their budget constraints.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, unlike normal goods, where demand increases with rising income.