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The data that result from two binomial experiment can be displayed as a two-way classification with 2 rows and 2 columns, so that the chi-square test of homogeneity can be used to compare the two binomial proportions and
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Rational Consumer
An economic theory assumption that consumers make purchasing decisions based on their rational outlook, available information, and self-interest to maximize utility.
Income Effect
A change in the quantity demanded of a product that results from the change in real income (purchasing power) caused by a change in the product’s price.
Normal Good
A good or service whose consumption increases when income increases and falls when income decreases, price remaining constant.
Marginal Utility
Marginal utility is the additional satisfaction or benefit received by consuming one more unit of a good or service, often decreasing as consumption increases.
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