Suppose That the Following Is to Be Tested: H0: P

question 50

Multiple Choice

Suppose that the following is to be tested: H0: p = 0.72 and Ha: p × 0.72. Calculate the observed z- statistic for the following sample data: Sixty- eight out of ninety test subjects have the characteristic of interest. Round to the nearest thousandth.

• A)z = 0.751
• B)z = 0.756
• C)z = - 0.751
• D)z = 0.453

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Definitions:

Ideal Cost-Of-Living Index

Cost of attaining a given level of utility at current prices relative to the cost of attaining the same utility at base-year prices.

Paasche Index

An economic measure that calculates the change in the cost of purchasing a specified basket of goods and services in a given year compared to a base year, using current-period weighting.

Nominal Income

The amount of money earned in current dollars, not adjusted for inflation.

Revealed Preference

A theory that deduces preferences of consumers by observing their choices and behaviors rather than their stated preferences.