Using Either the Critical Value Rule or the P-Value Rule

question 122

Multiple Choice

Using either the critical value rule or the p-value rule, if a one-sided null hypothesis is rejected at a given significance level, then the corresponding two-sided null hypothesis (i.e., the same sample size, the same standard deviation, and the same mean) will ________ be rejected at the same significance level.

• A) always
• B) sometimes
• C) never

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Definitions:

Free Entry and Exit

A market condition where firms can enter or leave an industry without facing major obstacles or costs.

Economic Profits

The surplus remaining after total costs are deducted from total revenue, considering both explicit and implicit costs.

Economic Profit

The distinction in a corporation's gross income versus its overall charges, factoring in both apparent and assumed costs.

Zero Economic Profit

A situation where a company's total revenues exactly equal its total costs, implying normal profit but no economic profit above that.