THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 60

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
In testing the hypotheses
H₀ : The two population locations are the same
H₁ : The two population locations are different,the following statistics were
calculated: n = 40,T₊ = 245,and T_- = 575 with data drawn from a matched pairs experiment.
-When should you use a nonparametric test? If the normality assumptions are met,are you better off using a parametric t-test to a nonparametric Rank Test?

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Definitions:

APC

Average Propensity to Consume, a statistical measure reflecting the percentage of income that is spent on goods and services as opposed to being saved.

Disposable Income

The amount of money a household has available for spending and saving after income taxes have been accounted for.

Induced Consumption

Spending induced by changes in the level of income.

Autonomous Consumption

The minimum amount that people will spend on the necessities of life.