-Refer to Table 3-5

question 99

Multiple Choice

-Refer to Table 3-5. Which country has an absolute advantage in each product?

• A) Canada has an absolute advantage in airplanes, and Japan has an absolute advantage in cars.
• B) Canada has an absolute advantage in neither good, and Japan has an absolute advantage in both goods.
• C) Canada has an absolute advantage in cars, and Japan has an absolute advantage in airplanes.
• D) Canada has an absolute advantage in neither good, and Japan has an absolute advantage in cars.

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Definitions:

Sample Variances

The measure of dispersion of data points in a sample around their sample mean, serving as an estimate of the population variance.

Test Statistic

A value calculated from sample data during a hypothesis test. Used to determine whether to reject the null hypothesis.

Alpha Level

The threshold of probability set for rejecting the null hypothesis; a measure of the likelihood of a Type I error.

Significance Level

The likelihood of incorrectly dismissing the null hypothesis as false, commonly represented by alpha.