Assume That You Plan to Use a Significance Level Of \alpha

question 185

Multiple Choice

Assume that you plan to use a significance level of $\alpha = 0.05$ test the claim that p $\mathrm { p } _ { 1 } = \mathrm { p } _ { 2 }$ . Use the given sample sizes and
numbers of successes to find the z test statistic for the hypothesis test.
-Information about movie ticket sales was printed in a movie magazine. Out of fifty PG-rated movies, 41% had ticket sales in excess of $3,000,000. Out of thirty-five R-rated movies, 17% grossed over $3,000,000.

• A) z = 2.352
• B) z = 7.291
• C) z = 3.763
• D) z = 4.704

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Definitions:

Corrective Tax

A tax designed to encourage or discourage certain behaviors to correct for the effects of externalities.

Socially Optimal

A state of resource allocation that is most beneficial for society as a whole.

Equilibrium Outcome

The state in a market where supply equals demand, and there is no external pressure to change the price or quantity of goods and services.

Positive Externalities

Benefits that are enjoyed by a third-party or society at large as a result of an economic activity, without them directly paying for it.