Refer to the Diagram Below

question 42

Multiple Choice

Refer to the diagram below.Assume the initial demand for and supply of dollars are shown by D₁ and S₁.The exchange rate will be:

• A)$1 equals 5 British pounds.
• B)$4 equals 1 British pound.
• C)$5 equals 1 British pound.
• D)JQ₃ British pounds per dollar.

---

Definitions:

α

Typically used to represent the significance level in hypothesis testing, which is the probability of rejecting the null hypothesis when it is actually true.

P-value

The probability of observing data at least as extreme as the observed data, assuming the null hypothesis is true.

Test Statistic

A numerical value calculated from a sample data during hypothesis testing, used to determine whether to reject the null hypothesis.

Larger

Referring to a quantity, amount, volume, or dimension that is greater than others in magnitude or size.