Microeconomics

question 4

Multiple Choice

Microeconomics

• A) studies individual decision making.
• B) studies aggregate behavior.
• C) cannot be applied too behaviors such as marriage.
• D) cannot be used to address questions of what ought to be.

---

Definitions:

Null Hypothesis

A default hypothesis that there is no significant difference or relationship, serving as the basis for statistical testing.

Alternative Hypothesis

It is a statement that suggests there is a difference or effect in the population parameters being studied, contradicting the null hypothesis.

Level of Significance

Refers to the probability threshold below which the null hypothesis is rejected, indicating the degree of evidence required to conclude that an effect is statistically significant.

Type I Error

The mistaken disapproval of a valid null hypothesis, commonly referred to as a "false positive."