The Standard Error Of $\bar { x } _ { 1 } - \bar { x } _ { 2 }$

question 6

Multiple Choice

The standard error of $\bar { x } _ { 1 } - \bar { x } _ { 2 }$ is the _____.

• A) variance of \(\bar { x } _ { 1 } - \bar { x } _ { 2 }\)
• B) variance of the sampling distribution of \(\bar { x } _ { 1 } - \bar { x } _ { 2 }\)
• C) standard deviation of the sampling distribution of \(\bar { x } _ { 1 } - \bar { x } _ { 2 }\)
• D) difference between the two means

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Definitions:

Substitution Effect

The economic principle that as the price of a good or service rises, consumers will replace it with cheaper alternatives, affecting the demand for goods.

Normal Good

A Normal Good is a type of good for which demand increases as the income of consumers increases and decreases when consumer income decreases, all else being equal.

Indifference Curve

A curve showing the different combinations of two products that yield the same satisfaction or utility to a consumer.