In the Sign Test for Paired Differences,the Test Statistic S

question 151

Multiple Choice

In the sign test for paired differences,the test statistic S has a:

• A)binomial distribution with P = 0.5.
• B)normal distribution.
• C)chi-square distribution.
• D)Poisson distribution.

---

Definitions:

Government Purchases

Expenditures by government entities on goods and services that are directly consumed or invested to achieve public objectives, contributing to aggregate demand.

Crowding-out

A phenomenon where increased government spending leads to a reduction in private sector spending and investment due to higher interest rates.

Aggregate Demand

The complete market appetite for all goods and services in an economy, assessed at a defined price level during a particular duration.

Medium of Exchange

An intermediary instrument used to facilitate the sale, purchase, or trade of goods between parties.