Which of the Following Is Correct

question 1

Multiple Choice

Which of the following is correct?

• A) We generally prefer doing one-sided tests followed by a two-sided test.
• B) We generally prefer doing two-sided tests followed by a one-sided test.
• C) We generally prefer doing one-sided tests unless we have a genuinely good reason to do a two-sided test.
• D) We generally prefer doing two-sided tests unless we have a genuinely good reason to do a one-sided test.

---

Definitions:

Diminishing

The process of lessening or decreasing in size, importance, or intensity.

Output

The quantity of goods or services produced by a business, individual, machine, or industry over a specified period.

Marginal Costs

Marginal costs refer to the increase or decrease in the total cost of producing one more unit of a good or service.

Marginal Productivity

The additional output that results from employing one more unit of input, such as labor or capital, while keeping other inputs constant.