If Two Random Samples of Sizes 30 and 36 Are

question 14

Multiple Choice

If two random samples of sizes 30 and 36 are selected independently from two populations with means 78 and 85, and standard deviations 12 and 15, respectively, then the mean of the difference is equal to:

• A)-7
• B) 7
• C) (78 -85) / (30-36) = 1.17
• D) 78/30 - 85/36 = 0.24

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Definitions:

Financial Gain

The increase in equity or wealth that an individual or company experiences, typically measured in terms of net profit or income.

Fairness

A principle relating to justice, equity, and impartiality within the allocation of resources or treatment of individuals.

Endowment Effect

The phenomenon in which people ascribe more value to things merely because they own them.

Loss Aversion

A concept in behavioral economics stating that individuals prefer avoiding losses to acquiring equivalent gains, showing that losses have a greater emotional impact than gains.