Two Different Firms Design Their Own Tests for Business Graduates

question 84

Short Answer

Two different firms design their own tests for business graduates, and an employer administers both versions to a random selection of prospective employees. Results are below.
At α = .02, test the claim that both versions produce the same score.
Mean difference = −4.25
Standard error of the difference = 1.411

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Definitions:

Patents

Legal documents granting an inventor exclusive rights to produce, use, and sell an invention for a certain period of time.

Research And Development

The investigative activities a business or government engages in to improve existing products and procedures or to lead to the development of new products and procedures.

Economies Of Scale

Cost advantages that a business achieves due to expansion in the scale of production, leading to a reduction in the cost per unit.

Natural Monopolies

Market conditions where a single supplier is the most efficient (due to high infrastructure costs or other barriers) in providing a particular good or service.