In Hypothesis Tests About P₁ - P₂, the Pooled Estimator $\bar { p } _ { 1 }$

question 1

Multiple Choice

In hypothesis tests about p₁ - p₂, the pooled estimator of p is a(n)

• A) simple average of \(\bar { p } _ { 1 }\) and \(\bar { p } _ { 2 }\) .
• B) weighted average of \(\bar { p } _ { 1 }\) and \(\bar { p } _ { 2 }\) .
• C) geometric average of \(\bar { p } _ { 1 }\) and \(\bar { p } _ { 2 }\) .
• D) exponential average of \(\bar { p } _ { 1 }\) and \(\bar { p } _ { 2 }\) .

---

Definitions:

Long Run

A period in economics where all factors of production and costs are variable, allowing for complete industry adjustment to changes.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, leading to competition based on quality, price, and brand.

Perfect Competition

A market structure characterized by many sellers and buyers, homogeneous products, and no single entity able to influence prices.

Barriers to Entry

Economic, procedural, or regulatory obstacles that prevent new competitors from easily entering an industry or area of business.