Which of the Following Statements Is Not True About the Sign

question 3

Multiple Choice

Which of the following statements is not true about the sign test?

• A)The binomial model is used to find an exact p- value.
• B)Matched pairs must be independent of other pairs in the sample.
• C)The p- value is based on the normal distribution.
• D)The sign test relies on the signs (negative or positive)of the measured differences in pairs.

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Definitions:

Mutually Beneficial Trades

Transactions between parties that improve the welfare of each participant.

Market Failures

Situations where the allocation of goods and services by a free market is not efficient, often leading to a loss of economic value.

Property Rights

Legal rights to possess, use, and dispose of assets, including real property or intellectual property, ensuring control and economic benefits to the rights holder.

External Costs

Costs of a transaction or activity that affect parties who are not directly involved in it, such as pollution affecting the wider community.