Consider the Following Hypothesis Test $\mu$ _{1 -} $\mu$ ₂ $\le$ 0 $\mu$

question 69

Essay

Consider the following hypothesis test:
$\mu$ _{1 -} $\mu$ ₂ $\le$ 0
$\mu$ _{1 -} $\mu$ ₂ > 0
The following results are for two independent samples taken from two populations.
a.Determine the degrees of freedom for the t distribution.
b.Compute the test statistic.
c.Determine the p-value and test the above hypotheses.

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Definitions:

Long-run Equilibrium

Long-run equilibrium is the condition in which all factors of production and inputs in a market are fully adjusted, prices have stabilized, and there is no tendency for change.

Long-run Phillips Curve

A graphical representation suggesting that in the long run, there is no trade-off between inflation and unemployment, as the economy adjusts to natural levels of employment.

Labor Force

The total number of workers, including both the employed and the unemployed

Expected Inflation

The rate at which general prices of goods and services are anticipated to rise over a specific period.