-The Graph Shows the Market for Cell Phones

question 80

Multiple Choice

-The graph shows the market for cell phones.The government imposes a sales tax on cell phones at $10 a cell phone.The excess burden of the sales tax on cell phones is ________.

• A) $20,000
• B) $15,000
• C) $35,000
• D) $7,500
• E) $30,000

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Definitions:

Type II Error

The error that occurs when the null hypothesis is not rejected when it is actually false, also known as a false negative result.

Type I Error

Mistakenly refusing a true null hypothesis, popularly known as a "false positive."

Nominal Data

Data that are categorized into distinct groups without implying any ranked order among them.

Confidence Level

The probability, expressed as a percentage, that the result of an experiment or study will fall within a specified range of values.