If Public Subsidies for Education Were Eliminated, What Would You

question 227

Multiple Choice

If public subsidies for education were eliminated, what would you expect as an outcome in the market for educational services?

• A) More students would enroll in school.
• B) The price students pay to attend school would equal the value of an additional unit of education consumed.
• C) There would be no correlation between the price students pay and the cost of providing the educational services.
• D) The quality of education would deteriorate.

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Definitions:

Permutation Test

A non-parametric statistical test that assesses the significance of a difference between groups by computing all possible outcomes under rearrangements of labels.

P-value

The probability of obtaining test results at least as extreme as the results observed, under the assumption that the null hypothesis is true.

Test Statistic

A calculated value used in statistical hypothesis testing to determine whether to reject the null hypothesis.

Bootstrap Distributions

Bootstrap distributions are theoretical distributions created by resampling with replacement from an observed dataset, used to estimate the sampling distribution.