The P-Value Is

question 1

Multiple Choice

The p-value is

• A)the probability that the alternative hypothesis is true.
• B)the probability that the null hypothesis is true.
• C)the probability of a statistic being at most as extreme as the observed value when H_o is true.
• D)the probability of a statistic being at most as extreme as the observed value when H_o is false.
• E)the probability of a statistic being at least as extreme as the observed value when H_o is true.

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Definitions:

Income Effect

The change in an individual's or economy's consumption patterns resulting from a change in real income.

Substitution Effect

The financial concept stating that when prices increase or incomes drop, individuals will substitute higher-priced goods with more affordable options.

Normal Goods

Goods for which demand increases as the income of consumers increases, and falls when consumer income decreases.

Utils

A hypothetical unit of measurement used in economics to represent the satisfaction or utility that a consumer receives from consuming goods and services.