Which of the Following Observations Would Be Consistent with the Effect

question 43

Multiple Choice

Which of the following observations would be consistent with the effect of oil speculation?

• A) Society becomes worse off from speculation because speculators intend to drive up the price of oil.
• B) Society becomes worse off as speculators decrease the value of oil by moving it to a time when its value is lower.
• C) Society becomes better off as speculators increase the value of oil by moving it to a time when its value is higher.
• D) Society is indifferent about the activities of speculators.

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Definitions:

Hypothesis Test

A procedure in statistics to determine if there is enough evidence to reject a null hypothesis in favor of an alternative hypothesis.

Chi-square Distribution

A statistical distribution used particularly in hypothesis testing, derived from the sum of the squares of a set of variables that follow a normal distribution.

Critical Value

A point on the scale of the test statistic beyond which the null hypothesis is rejected.

Sampling Distribution

A probability distribution of a statistic obtained through a large number of samples drawn from a specific population.