When Consumers or Businessmen Stop Collecting Information to Make Decisions

question 3

Multiple Choice

When consumers or businessmen stop collecting information to make decisions at the point where marginal cost of data collection equals the marginal utility of the data, economists would call the decisions based on existing data

• A)perfect decisions.
• B)optimally imperfect decisions.
• C)joint decisions.
• D)rent seeking.

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Definitions:

Independent Samples

Sets of data collected from distinct, non-overlapping populations.

Parametric Tests

Statistical tests that assume the underlying data distributions fit certain parameters, such as being normally distributed.

Errors In Assumptions

Mistakes or misjudgments made regarding the foundational conditions or premises upon which statistical analyses or models are based.

Nonparametric Techniques

Statistical methods that do not assume a specific distribution for the data and are often used for data that does not meet the assumptions necessary for parametric tests.