What Is the "Right" Degree of Abstraction Necessary to Analyze

question 65

Multiple Choice

What is the "right" degree of abstraction necessary to analyze an economic problem?

• A)Simple abstraction of only minor details
• B)Simple abstraction of only irrelevant details
• C)Total abstraction of all variables
• D)Total abstraction of all irrelevant details
• E)There is no "right" degree of abstraction to analyze an economic problem.

---

Definitions:

P-Value

Given that the null hypothesis is presumed correct, it's the likelihood of experiencing test findings that are as extreme or more extreme than actually observed ones.

Test Statistic

A calculated value from sample data, used to decide whether to reject the null hypothesis in the context of a hypothesis test.

Null Hypothesis

In statistical testing, a hypothesis that assumes there is no significant difference or effect, serving as the default assumption to test against.

Null Hypothesis

A hypothesis in statistical inference and hypothesis testing that suggests no significant effect or relationship exists in the data.