Suppose You Want to Test the Claim That $\mu _ { 1 } \neq \mu _ { 2 } .$

question 94

Multiple Choice

Suppose you want to test the claim that $\mu _ { 1 } \neq \mu _ { 2 } .$ Assume the two samples are random and independent. At a level of significance of α $\alpha$ = 0.05, when should you reject H₀?
Population statistics: $\sigma _ { 1 } = 1.5 \text { and } \sigma _ { 2 } = 1.9$ Sample statistics: $\overline { \mathrm { x } } 1 = 19 , \mathrm { n } _ { 1 } = 50 \text { and } \overline { \mathrm { x } } 2 = 17 , \mathrm { n } _ { 2 } = 60$

• A)Reject H₀ if the standardized test statistic is less than -1.96 or greater than 1.96.
• B)Reject H₀ if the standardized test statistic is less than -2.33 or greater than 2.33.
• C)Reject H₀ if the standardized test statistic is less than -1.645 or greater than 1.645.
• D)Reject H₀ if the standardized test statistic is less than -2.575 or greater than 2.575.

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Definitions:

Pigovian Tax

A tax imposed on activities that generate negative externalities, intended to correct an inefficient market outcome by being equal to the social cost of the externalities.

Command-And-Control

Command-and-control refers to a regulatory approach where the government directly stipulates what actions are required for compliance, often seen in environmental regulation.

Market-Based

Economic systems or policies that are reliant on the forces of supply and demand rather than governmental interventions to allocate resources.

Command-And-Control Policies

Government interventions that directly regulate permissible levels of emissions or methods of production, through mandates or restrictions.