Which of the Following Is the Correct Decision in a Goodness-Of-Fit

question 100

Multiple Choice

Which of the following is the correct decision in a goodness-of-fit test, if the calculated value of the test statistic is 20.08 and there are 10 categories, testing at 1% level of significance?

• A)We reject Ho because p-value < 0.01.
• B)We do not reject Ho because p-value < 0.01.
• C)We reject Ho because 0.01 < p-value < 0.025.
• D)We do not reject Ho because 0.01 < p-value < 0.025.

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Definitions:

External Costs

Costs of an economic activity that are not borne by the participants in the activity but are imposed on others, such as pollution.

Competitive Free Market

A market structure where many firms offer products or services that are similar, allowing for free entry and exit, with prices determined by supply and demand forces.

Marginal External Cost

The cost imposed on a third party not involved in a transaction or activity due to an additional unit of production.

Methane Gas

A potent greenhouse gas with a simple chemical formula CH4, commonly produced by the decomposition of organic materials and digestive processes of animals.