Applying Statistical Inference: an Example If Mark Chose a

question 58

Multiple Choice

Applying Statistical Inference: An Example If Mark chose a .01 significance level for his experiment and then found that the results could have occurred by chance more than 1 out of 100 times, he should

• A)accept the alternative hypothesis.
• B)accept the null hypothesis.
• C)reject the null hypothesis.
• D)report a trend towards significance.

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Definitions:

Price Effect

Refers to the impact on consumer demand or the quantity demanded of a good when its price changes, holding other factors constant.

Quantity Effect

The change in total revenue resulting from a change in the quantity of a product sold, holding price constant.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, quantitatively defined as the percentage change in quantity demanded divided by the percentage change in price.

Expenditures on Milk

The total amount of money spent by individuals or entities on purchasing milk within a given period.