Suppose You Want to Compare Two Treatments, a and B

question 4

Essay

Suppose you want to compare two treatments, A and B. In particular, you wish to determine whether the distribution for population B is shifted to the right of the distribution for population A. You plan to use the Wilcoxon rank sum test. a. Specify the null and alternative hypotheses you would test. b. Suppose you obtained the following independent random samples of observations on experimental units subjected to the two treatments. Conduct the test of hypotheses described above, using α = .05. Sample A: 1.2, 1.5, 2.3, 3.2, 3.7, 4.1 Sample B: 2.5, 2.8, 3.6, 4.2, 4.5

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Definitions:

Bertrand Duopoly

An economic model where two companies compete solely on price, leading to a situation where prices tend toward the cost of production.

Optimal Prices

The price point at which a business can sell its goods or services to maximize its profit margin without losing demand.

Homogenous Goods

Products that are essentially identical, where each unit is the same as every other unit in terms of attributes and quality.

Nash Equilibrium

A concept within game theory where the optimal outcome of a game is one where no player has an incentive to deviate from their chosen strategy after considering an opponent's choice.