Why Is It Necessary to Use the Pooled Variance When

question 5

Multiple Choice

Why is it necessary to use the pooled variance when conducting an independent-samples t test?

• A) We are working with two samples, and an estimate of spread based on two samples is likely to be more accurate than an estimate of spread based on a single sample.
• B) It is necessary to estimate the standard deviation of the two samples in order to compare the two samples to one another.
• C) Estimating the spread of the sample using the standard deviation increases the generalizability of results.
• D) Using the pooled variance helps the researcher identify skewness.

Distinguish between the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO).

Understand the economic and political arguments for and against the imposition of tariffs and quotas.

Recognize the largest regional trading blocs and their impact on international trade.

Understand the historical development of international trade agreements such as GATT.

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Definitions:

Positive Externalities

Benefits that are enjoyed by a third-party or the society at large, as a result of an economic transaction.

Socially Optimal Level

The socially optimal level is the quantity of production or consumption where the marginal social cost equals the marginal social benefit, maximizing overall welfare.

Policymakers

Individuals or groups responsible for making decisions and establishing regulations that guide the economic, social, and political governance of a society.

Marginal Benefit

The plus in satisfaction or usefulness someone gets by consuming an extra unit of a given product or service.