Applying Statistical Inference: an Example Calvin Has Set His Alpha

question 40

Multiple Choice

Applying Statistical Inference: An Example Calvin has set his alpha level at .05.He will reject the null hypothesis if he observes a difference between treatment conditions that is so large that it could have occurred by chance

• A)5 in 100 times.
• B)at least 5 in 100 times.
• C)less than 5 in 100 times.
• D)more than 5 in 100 times.

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Definitions:

Income Effect

A change in the consumption patterns of individuals arising from a change in their real income, due to shifts in prices or income levels.

Unskilled Workers

Workers who have no specific training or specialized skills and usually perform simple tasks that require limited education.

Minimum Wage

The minimum wage permitted by law that employers can pay their employees, whether it's calculated by the hour, day, or month.

Backward-Bending Labor Supply Curve

As the wage rate rises, more and more people are willing to work longer and longer hours up to a point. They will then substitute more leisure time for higher earnings.