Ed,a Businessperson,is a Friend of Fran,the Owner of a Percolated

question 23

Essay

Ed,a businessperson,is a friend of Fran,the owner of a Percolated Coffee & Baked Goods store. Every day,Ed spends five minutes in Fran's store,looking at the goods and usually buying one or two cinnamon buns or bagels. One afternoon,Ed goes into the store,looks at the items,and picks up a $1 chocolate brownie. Ed waves the brownie at Fran without saying a word and walks out. Is there a con-tract? If so,how would it be classified in terms of formation,perform-ance,and enforceability?

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Definitions:

Directional Hypothesis

A hypothesis that outlines the anticipated direction of the difference or relationship.

Critical Value

A threshold in a statistical test that defines the boundary for deciding whether an observed statistic is extreme enough to reject the null hypothesis.

Alpha

A threshold value used in hypothesis testing to determine the significance level at which the null hypothesis is rejected in favor of the alternative hypothesis.

Non-directional Hypothesis

A hypothesis that does not predict the specific direction of the difference or relationship, only that one exists.