In a Study of Low Tar Cigarettes, fiVe Cigarettes from Each

question 91

Multiple Choice

In a study of low tar cigarettes, five cigarettes from each of three brands were tested to see if the
Mean amount of tar per cigarette differs among the brands.
i. The F critical value for alpha = 0.05 is 3.74.
ii. If F calculated is 4.75, the decision if α = 0.05 is to reject H0.
iii. If the calculated F is 4.74, the decision if α = 0.01 is to reject H0.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (ii) is a correct statement but not (i) or (iii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Marginal Social Benefit

The additional benefit to society from consuming one more unit of a good or service.

Marginal Private Cost

The cost incurred by a firm for producing one additional unit of a good, exclusive of any external costs.

Technology Spillovers

Benefits that firms or countries obtain by imitating or learning from the innovations of others, often without incurring the cost of innovation.

Subsidies

Financial assistance grants or tax breaks provided by the government to support businesses, organizations, or individuals, encouraging production or consumption of certain goods and services.