The P-Value Is the Probability of Getting a Test Statistic

question 14

Multiple Choice

The p-value is the probability of getting a test statistic at least as extreme as the one representing the sample data, assuming that ______________________________.

• A) the null hypothesis is true
• B) the null hypothesis is false
• C) the alternative hypothesis is true
• D) the alternative hypothesis is false

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Definitions:

Negative Externalities

Costs suffered by a third party due to an economic transaction or activity for which they are not compensated.

Positive Externalities

Benefits that are experienced by third-parties or the society at large as a result of an economic transaction or activity, without those third parties directly paying for the benefits received.

Efficient Output Levels

Points of production where the economy can no longer increase the production of one good without decreasing the production of another good, achieving an optimal distribution of resources.

Socially Optimal

A state or outcome that is considered the most efficient and beneficial for society as a whole, often in terms of resource allocation or welfare.