If a Market Is Shared Equally by Four Firms, the Herfindahl-Hirschman

question 283

Multiple Choice

If a market is shared equally by four firms, the Herfindahl-Hirschman Index is

• A) 1/4.
• B) 4.
• C) 25.
• D) 2,500.

---

Definitions:

Chi-Square Distribution

A statistical distribution used for hypothesis testing that is derived from the sum of squared variables that follow a normal distribution.

Chi-Square Distribution

The chi-square distribution is a statistical distribution used in hypothesis testing that is applicable to variables measured on a nominal scale, primarily for goodness-of-fit and independence tests.

Test Statistic

A numerical value calculated from a sample and used in hypothesis testing to evaluate the plausibility of the null hypothesis.

Critical Region

The set of values for which the null hypothesis is rejected in a statistical test.