Table 64 -Refer to Table 6

question 161

Multiple Choice

Table 6.4
$$\begin{array}{l}\text { Table } 6.4\\\begin{array} { c c c } \text { Year } & \text { Price Index } & \text { Nominal GDP } \\\hline 2001 & 100 & \$ 95 \text { billion } \\2002 & 105 & \$ 110 \text { billion } \\2003 & 110 & \$ 120 \text { billion } \\2004 & 120 & \$ 125 \text { billion } \\2005 & 132 & \$ 137.5 \text { billion }\end{array}\end{array}$$
-Refer to Table 6.4, which shows the price indexes and the nominal gross domestic product (GDP) for an economy from 2001 to 2005. The real GDP _____ between 2001 and 2002.

• A) increased by slightly less than $10 billion
• B) decreased by slightly more than $5 billion
• C) remained constant
• D) increased by only about $1 billion
• E) increased more than $20 billion

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Definitions:

Test Statistic

A value calculated from sample data during a hypothesis test. It is used to decide whether to reject the null hypothesis.

P-value

The likelihood of achieving equally extreme or more extreme test results than those observed, with the presupposition that the null hypothesis is correct.

Confidence Interval Estimate

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter, expressed with a certain level of confidence.

Proportion of Defectives

The fraction or percentage of items in a batch or production that are considered defective or fail to meet quality standards.