A Researcher Is Interested in Comparing the Usage of Bank

question 6

Multiple Choice

A researcher is interested in comparing the usage of bank debit cards by consumers in rural (r) and urban (u) areas. Each year for the past five years, she has surveyed 500 individuals (one-half urban, one-half rural) randomly selected from across the United States. She is specifically interested in any differences that may exist between the two groups with regard to usage. The results of the current study indicate that people in urban areas use bank debit cards 12 times per month on average( ) , while those in rural areas use bank cards 10 times per month on average ( ) .
-Refer to Exhibit 13.2. Assuming that the standard error of estimate for the difference in means is 1.5, calculate the value of the test statistic that would be used in the comparison of the two means.

• A)0.75
• B)1.33
• C)1.88
• D)1.96
• E) None of the above.

---

Definitions:

Gains from Trade

The net benefits that parties obtain by voluntarily exchanging goods or services in markets.

Comparative Advantage

The ability of an individual or country to produce a good or service at a lower opportunity cost than others.

Production Possibility Curve

A graph that shows the maximum number of possible units a company can produce of two products given a set of inputs, reflecting the trade-off and opportunity cost of producing one product over another.

Trade

The action of buying, selling, or exchanging goods and services between people, firms, or countries.