Making Rational Decisions at the Margin Means That People

question 102

Multiple Choice

Making rational decisions at the margin means that people

• A)make those decisions that do not impose a marginal cost.
• B)evaluate how easily a decision can be reversed if problems arise.
• C)compare the marginal costs and marginal benefits of each decision.
• D)always calculate the dollar costs for each decision.

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Definitions:

Dunnett Test

A post hoc test used after ANOVA to compare multiple groups against a single control group, assessing if there are significant differences between the control and each of the other groups.

Scheffé Test

A statistical procedure for comparing more than two means while controlling the overall Type I error rate.

Analytical Comparisons

The process of examining similarities and differences between two or more items or data sets, often to evaluate or assess characteristics.

Null Hypothesis

Restated, it is the hypothesis in statistical testing that assumes no significant difference or relationship exists between specified populations, parameters, or data sets.