If H ₀ Is in Reality False and It Is

question 61

Multiple Choice

If H ₀ is in reality false and it is legitimate to use a directional H ₁, which of the following will yield a more powerful test?

• A) one-tailed alternative hypothesis
• B) two-tailed alternative hypothesis
• C) one-tailed or two-tailed alternative hypothesis will yield the same power
• D) type of alternative hypothesis has no effect on power

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Definitions:

Cournot Duopoly

A Cournot Duopoly is a market structure where two firms compete on the amount of output they will produce, each assuming the other's output as given when deciding its own output level.

Cournot Duopoly

A model of competition in which two firms choose their output levels strategically, assuming the output of the other, aiming to maximize profit.

Linear

Describing a relationship or function that can be graphically represented as a straight line, indicating a constant rate of change.

Reaction Functions

Reaction functions describe how one player's optimal strategy depends on the strategies of other players in a strategic game or economic model.