The Principle That "As One Input Increases While the Other

question 135

Multiple Choice

The principle that "as one input increases while the other inputs are held fixed, output increases at a decreasing rate" is known as the

• A) marginal principle.
• B) principle of opportunity cost.
• C) principle of diminishing returns.
• D) spillover principle.

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Definitions:

Confidence Intervals

A sequence of values, garnered from samples, anticipated to cover the value of a yet-to-be-discovered population parameter.

Sampling Distribution

The probability distribution of a given statistic based on a random sample.

Central Limit Theorem

A statistical theory that states that the sampling distribution of the sample mean will approach a normal distribution as the sample size becomes larger, regardless of the shape of the population distribution.

Test Statistic

A calculated value from statistical test data used to determine whether to reject the null hypothesis in favor of the alternative hypothesis.