Use This Information Below to Answer Questions 121-122

question 61

Multiple Choice

Use this information below to answer questions 121-122.
A researcher looked at young people's Knowledge of the cost of weddings, where it's been found that many students' estimates of the cost of a wedding was less than the actual average. As a result of this finding, imagine you hypothesize that young people will underestimate the average cost of a wedding gown. To test this hypothesis, a group of college students are asked, "According to the Brides.com ( HYPERLINK "http://www.brides.com/" http://www.brides.com) 2009 American Wedding Survey, what is the average cost of a wedding gown?" The responses of some of the students in this class are summarized as:
N = 28 = 2432.14
s = 1643.18
-For α = .05 (two-tailed) , which of the following is an appropriate critical value?

• A) 1.703
• B) 1.706
• C) 2.052
• D) 2.056

Identify the effects of interest rate changes on savings and consumption.

Recognize the significance of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS).

Apply the permanent income hypothesis to predict consumer behavior in response to changes in income and taxation.

Understand and compute stockholders' equity and its components.

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