Scenario 13-2

question 18

Multiple Choice

Scenario 13-2. Assume the following information for an imaginary, closed economy.
GDP = $200,000; consumption = $120,000;
government purchases = $35,000; and taxes = $25,000.
-Refer to Scenario 13-2. For this economy, private saving is equal to

• A)$40,000.
• B)$50,000.
• C)$55,000.
• D)$60,000.

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Definitions:

Permutation Test

A nonparametric method to determine statistical significance by computing all possible arrangements of observed data.

Two-Sample T Test

A statistical method used to compare the means of two independent samples to determine if there is a significant difference between them.

P-values

The probability of obtaining an effect at least as extreme as the one in your sample data, assuming the null hypothesis is true, used in hypothesis testing.

Bootstrap Standard Error

An estimation technique for assessing the variability of a statistic by resampling with replacement from an original dataset.