A Network Externality Can Be Said to Exist When

question 37

Multiple Choice

A network externality can be said to exist when:

• A)a recording artist appears on a popular TV show leading to an increase in popularity and record sales; this is called the "snob effect".
• B)a recording artist appears on a popular TV show leading to an increase in popularity and record sales; this is called the "bandwagon effect".
• C)many people try to access the internet at the same time leading to a system crash.
• D)two television networks decide to merge.

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Definitions:

Null Hypothesis

A default hypothesis that there is no effect or no difference, and any observed difference is due to sampling or experimental error.

Sample Statistic

A numerical measure computed from a sample of data, used to estimate population parameters.

Population Parameter

A numerical value that describes a characteristic of a population.

Sampling Error

A difference between the sample statistic and the actual population parameter, which occurs by chance because the sample is not a perfect representation of the population.