What Do You Think Is the Primary Reason Why Some

question 7

Multiple Choice

What do you think is the primary reason why some business analysts prefer to use parametric tests even when the normality assumption has been violated?

• A) Non-parametric tests are harder to carry out.
• B) Non-parametric tests are less powerful.
• C) Parametric tests are less robust.
• D) Parametric tests are more likely to show causal effects.

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Definitions:

Marginal Cost

The increase in cost resulting from the production of one additional unit of a product.

Demand Elasticity

The measure of how much the quantity demanded of a good or service changes in response to a change in price, indicating the sensitivity of consumers to price changes.

Coffee Mugs

Drinking vessels, typically made of ceramic, used for serving hot beverages such as coffee.

Quantity Sold

The total number of units of a product or service that have been purchased by consumers during a specific period.