In Order to Prove That Dr

question 65

Multiple Choice

In order to prove that Dr. Pepper and 7-Up are substitutes, economists should test the ____ and get a ____.

• A) price elasticity of demand; number less than 1
• B) income elasticity; positive number
• C) cross-price elasticity; positive number
• D) price elasticity of demand; number greater than 1

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Definitions:

Chi-Square Value

A statistical measure used in tests of independence and goodness of fit, indicating how expectations compare to actual observed data.

Degrees of Freedom

Degrees of freedom refer to the number of independent values or quantities that can vary in an analysis without breaking any constraints.

Contingency Table

A data table that displays the frequency distribution of the variables.

Expected Frequency

In statistics, the predicted count of occurrences in a category of a contingency table based on probabilities derived from a theoretical distribution.