A Student Answered 50 of 80 True/false Questions Correctly

question 15

Multiple Choice

A student answered 50 of 80 true/false questions correctly. Does this performance indicate that the student knew something, or was he just lucky? (Hint: Use chi-squared and α = .05.)

• A) Chi-square =2.5; he knew something.
• B) Chi-square =2.5; he was lucky.
• C) Chi-square =5.0; he knew something.
• D) Chi-square =5.0; he was lucky.

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Definitions:

Average Variable Cost (AVC)

The variable cost of production divided by the number of units produced, reflecting the cost per unit excluding fixed costs.

Average Fixed Cost (AFC)

A firm’s total fixed cost divided by output (the quantity of product produced).

Marginal Cost (MC)

The extra (additional) cost of producing 1 more unit of output; equal to the change in total cost divided by the change in output (and, in the short run, to the change in total variable cost divided by the change in output).

Total Cost

The sum of all costs incurred by a business in the production of goods or services, including both fixed and variable costs.