If a 5 Percent Increase in Income Leads to a 10

question 88

Multiple Choice

If a 5 percent increase in income leads to a 10 percent decrease in quantity demanded for a product, this product is

• A)an income elastic good.
• B)an inferior good.
• C)a necessity.
• D)a luxury good.

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Definitions:

Sum Squares Treatments (SST)

The total variation attributed to different treatments in an analysis of variance (ANOVA) context, measuring the difference between treatment means and the overall mean.

Mean Square Treatments

In the context of ANOVA, a measure of variance among the means of different groups, calculated by dividing the sum of squares due to treatment by the degrees of freedom for treatment.

F-test

A statistical test used to compare two variances and ascertain if they come from populations with equal variances.

Total Variation

Refers to the overall difference between individual values and the mean within a dataset, capturing the spread.