Table 2.5 Table 2.5 Shows the Output Per Month of Two People

question 74

Multiple Choice

Table 2.5

Table 2.5 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2.5. Which of the following statements is true?

• A)Fred has a comparative advantage in making both products.
• B)Barney has a comparative advantage in making both products.
• C)Barney has a comparative advantage in making pogo sticks and Fred in making unicycles.
• D)Barney has a comparative advantage in making unicycles and Fred in making pogo sticks.

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Definitions:

Analysis of Variance

A collection of statistical models used to analyze the differences among group means by partitioning variance into multiple components.

ANOVA

Short for Analysis of Variance, a statistical method used to test differences between two or more means.

F Statistic

A value derived from ANOVA tests used to determine whether the variances between multiple groups are significantly different.

One-way ANOVA

A statistical examination aimed at finding out whether significant disparities exist among the averages of three or more distinct groups.