A .05 Level of Significance Means That​

question 2

Multiple Choice

A .05 level of significance means that​

• A) ​there is only a 5% chance that the statistic's value could be obtained as a result of sampling errors only.
• B) ​one is 50% certain that the sample value is representative of the population.
• C) ​there is only a 5% chance that the variables tested are not independent.
• D) ​the results can be accepted because the sampling error is only 5%.
• E) the level of confidence is only 5%.​

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Definitions:

Kinked-Demand Curve

A model in oligopoly markets where firms face a more elastic demand curve for price increases and a less elastic curve for price decreases.

Marginal Revenue Curve

A graphical representation showing the change in total revenue that results from selling one additional unit of a product or service.

Demand Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

Collusion

A secret or illegal agreement or cooperation between parties to limit competition and manipulate prices or market conditions in their favor.