One-Way Analysis of Variance Is Being Used to Test the Equality

question 80

Multiple Choice

One-way analysis of variance is being used to test the equality of four population means using a sample of size 8 from each of the four populations.The test statistic (F_stat) for the test turns out to be 3.991.The significance level is set at 5%.Report your conclusion.

• A)Since the test statistic (F_stat) is greater than the critical value (F_c) for the test, we reject the "no difference" null hypothesis.
• B)Since the test statistic (F_stat) is less than the critical value (F_c) for the test, we cannot reject the "no difference" null hypothesis.
• C)Since the test statistic (F_stat) is greater than the critical value (F_c) for the test, we cannot reject the "no difference" null hypothesis.
• D)Since the test statistic (F_stat) is less than the critical value (F_c) for the test, we reject the "no difference" null hypothesis.

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Definitions:

Unregulated Monopolist

A monopoly that operates without regulatory oversight, setting prices and output levels without external control.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing the financial gain in excess of the opportunity costs of resources used.

X-Inefficiency

The difference between efficient behavior of enterprises assumed or implied by economic theory and their observed behavior in practice, often due to a lack of competitive pressure.

Pure Competition

A market structure characterized by many small firms producing identical products, where no single firm has significant control over the market price.