Which of the Following Is True

question 49

Multiple Choice

Which of the following is true?

• A) Employers who discriminate against blacks and other minorities will have lower costs than rival firms that hire employees strictly on the basis of merit (productivity).
• B) After adjusting for factors such as education, experience, and location, the earnings of black men are almost identical to the earnings of similar white men.
• C) If employers can hire equally productive minority employees at a lower wage than non-minorities, the profit motive provides a strong incentive to do so.
• D) The empirical evidence indicates that the earnings gap between whites and blacks is entirely the result of employment discrimination.

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Definitions:

Sample Size

The number of observations or elements chosen from a population for the purpose of statistical analysis.

Significance Level

A threshold within which the p-value of a hypothesis test must fall for the result to be deemed statistically significant, typically set at 0.05 or 5%.

Test Power

The likelihood that a statistical test will correctly reject a false null hypothesis, identifying an effect when it is present.

Level of Significance

The threshold used in statistical hypothesis testing to decide whether to reject the null hypothesis, typically denoted by alpha (α) and set prior to conducting a test.