Refer to the Accompanying Figure

question 134

Multiple Choice

Refer to the accompanying figure. At a price of $3, there will be:

• A)an excess demand of 5 units.
• B)an excess demand of 7 units.
• C)an excess supply of 7 units.
• D)an excess supply of 2 units.

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Definitions:

Null Hypothesis

A statement or hypothesis that assumes there is no significant difference or effect, serving as the basis for statistical testing.

Level of Significance

The threshold chosen for determining whether a statistical result is significant in hypothesis testing, typically set at values like 0.05, 0.01, etc.

Rejected

In statistical analysis, this term refers to the decision to dismiss the null hypothesis when the test statistic falls outside of the designated critical region.

P-value

The probability of obtaining test results at least as extreme as the ones observed during the test, assuming that the null hypothesis is true.