An Optimal Decision Is One That Is Selected Based on an Analysis

question 186

Multiple Choice

An optimal decision is one that is selected based on an analysis of

• A)explicit costs but not implicit costs.
• B)implicit costs but not explicit costs.
• C)both explicit costs and implicit costs.
• D)neither explicit costs nor implicit costs.

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Definitions:

Two-sided

Pertaining to hypothesis tests that consider deviations in both directions away from a specified null hypothesis.

One-sided

A term used in hypothesis testing to describe a test where the alternative hypothesis specifies a direction of the difference or effect.

Alternative Hypothesis

A hypothesis that suggests there is a statistically significant effect or difference between two or more variables or groups.

Average Amount

The sum of values divided by the number of values, representing a central or typical value in a set of data.