When the Necessary Conditions Are Met, a Two-Tail Test Is $p _ { 1 } - p _ { 2 }$

question 37

Multiple Choice

When the necessary conditions are met, a two-tail test is being conducted to test the difference between two population proportions. The two sample proportions are p₁ = 0.25 and p₂ = 0.20 and the standard error of the sampling distribution of $p _ { 1 } - p _ { 2 }$ is 0.04. The calculated value of the test statistic will be:

• A) z = 0.25.
• B) z = 1.25.
• C) t = 0.25.
• D) t = 0.80.

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Definitions:

Industry Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded in an industry.

Marginal Revenue

The extra revenue received from selling an additional unit of a product or service.

Profit-Maximizing

A process or strategy aiming to achieve the highest possible profits from business operations.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as output quantity changes, typically downward sloping for firms in competitive markets.