A Sociologist Wants to Determine If the Life Expectancy of People

question 73

Multiple Choice

A sociologist wants to determine if the life expectancy of people in Africa is less than the expectancy of people in Asia. The data obtained is shown in the table below.
$\begin{array}{ll}\hline \text { Africa } & \text { Asia } \\\hline \bar{X}_{1}=63.3 \mathrm{yr} . & \bar{X}_{2}=65.2 \mathrm{yr} . \\\sigma_{1}=9.1 \mathrm{yr} . & \sigma_{2}=7.3 \mathrm{yr} . \\n_{1}=120 & n_{2}=150 \\\hline\end{array}$
What is the test value?

• A) -5.38
• B) -1.86
• C) -3.70
• D) -0.47

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing what is lost by choosing one option over another.

Money Demanded

The total amount of money that households and businesses wish to hold at a given time, often influenced by interest rates.

Fed Buys Government Bonds

The action by the Federal Reserve to purchase government securities from the market, which increases the money supply and lowers interest rates.

Banking System Reserves

The portion of deposits that banks must hold in reserve and not lend out, often held at the central bank to ensure liquidity.