If You Have a High Rate of Time Preference, Then

question 89

Multiple Choice

If you have a high rate of time preference, then you are

• A)willing to wait a longer time to consume a good than someone with a low rate of time preference.
• B)not willing to wait a long time to consume a good.
• C)willing to save your earnings so that you can buy more goods in the future.
• D)not acting rationally, because it means that you are willing to delay consumption of goods and services until a later date (but you might not be around to do so).

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Definitions:

T-distribution

A statistical probability distribution utilized for estimating parameters of a population when dealing with a small sample size and an unknown population variance.

Degrees Of Freedom

The number of independent pieces of information available to estimate another parameter or the dimensionality of a statistical calculation.

Test Statistic

A value calculated from sample data during a hypothesis test used to determine the p-value or to compare against a critical value to accept or reject a null hypothesis.

Hypotheses

Proposed explanations or predictions, typically stated in a testable form, that can be examined through experimentation or observation.