If You Wish to Determine Whether There Is Evidence That

question 120

Multiple Choice

If you wish to determine whether there is evidence that the proportion of items of interest is higher in group 1 than in group 2, the appropriate test to use is

• A) the Z test for the difference between two proportions.
• B) the F test for the difference between two variances.
• C) the pooled-variance t test for the difference between two proportions.
• D) the F test for the difference between two proportions.

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Definitions:

Downsloping

Describes a downward trend or inclination, often used in economics to describe a decrease in the price of a good leading to an increase in demand.

Elasticity Coefficient

A numerical measure of the responsiveness of the quantity demanded or supplied of a good to one of its determinants, like price or income.

Marginal Revenue Curve

A graphical representation showing how much additional revenue a firm will make from selling one more unit of a product or service.

Relatively Elastic

Refers to a scenario in which the demand or supply for a product or service greatly alters due to variations in its price.