If We Are Interested in Testing Whether the Proportion of Items

question 49

Multiple Choice

If we are interested in testing whether the proportion of items in population 1 is larger than the proportion of items in population 2, the

• A) null hypothesis should state p₁ - p₂ < 0.
• B) alternative hypothesis should state p₁ - p₂ = 0.
• C) alternative hypothesis should state p₁ - p₂ < 0.
• D) alternative hypothesis should state p₁ - p₂ > 0.

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Definitions:

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically characterized by the absence of involuntary unemployment.

Full Production

A state of economic production in which all available resources (labor, capital, etc.) are being used efficiently, leading to the maximum possible output.

Capacity Utilization

The percentage of a country's production capacity that is actually being used over a certain period of time, indicating the overall economic activity and efficiency.

Labor Unemployment

A situation where individuals who are willing and able to work are unable to find employment, often measured by the unemployment rate.