You Sell Your Used Car to a Stranger

question 16

Multiple Choice

You sell your used car to a stranger. He gives you a cheque he knows is bad. By the time you find that out, he has sold the car to a third party. The third party paid a fair price and did not know that the vendor was a fraudsman. What is the situation now as between you and the third party?

• A)You can get the car returned. The fraudsman could not give good title, because he didn't have it.
• B)You are out of luck. Title has passed to the innocent third party.
• C)You can get the car returned. You and the third party are both innocent victims, so title reverts to the last party to have good title, which is you.
• D)The third party may keep the car, but will have to pay you damages.
• E)You can get the car returned, but you will have to pay the third party damages.

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Definitions:

Power of the Test

The probability that the test correctly rejects a false null hypothesis, effectively detecting an effect when there is one.

Normally Distributed

A probability distribution that demonstrates symmetry around its mean, indicating that occurrences diminish as distance from the mean increases.

Probability

The quantification of the chance of an event happening, represented as a numerical value ranging from 0 to 1.

Test Statistic

A standardized value that is calculated from sample data during a hypothesis test. It is used to determine whether to reject the null hypothesis.