Assume That You Plan to Use a Significance Level of α

question 68

Multiple Choice

Assume that you plan to use a significance level of α = 0.05 to test the claim that p1 = p2. Use the given sample sizes and numbers of successes to find the pooled estimate $\bar { p }$ . Round your answer to the nearest thousandth. $$\begin{array} { l l } n _ { 1 } = 677 & n _ { 2 } = 3377 \\x _ { 1 } = 172 & x _ { 2 } = 654\end{array}$$

• A) 0.408
• B) 0.163
• C) 0.204
• D) 0.452

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Definitions:

Free-Rider Problem

A situation in which individuals benefit from resources or services without paying for them, leading to underprovision of those goods.

External Costs

Costs created by an activity that affect other parties without them being reflected in the market prices, similar to negative externalities.

Production

The process of creating goods and services through the combination of labor, materials, and capital.

Coase Theorem

A principle that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of rights.