Adam and Bob Are Identical Twins Who Attended Grammar School

question 145

Multiple Choice

Adam and Bob are identical twins who attended grammar school through high school together. Adam got a job after high school, and Bob got a job after graduating from college. Adam earns $36,000 a year, and Bob earns $69,000 a year. Select the best explanation for this wage difference.

• A)Adam has less human capital than Bob.
• B)Bob has less human capital than Adam.
• C)Adam has received a compensating differential
• D)Adam is a member of a union.

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Definitions:

Significance Level

A threshold for determining the statistical significance of a test result, often denoted by alpha (α).

Standard Deviation

An indicator of the degree of variation or spread among a collection of numbers.

Confidence Interval

A range of values, derived from the sample data, that is likely to contain the value of an unknown population parameter with a specified level of confidence.

Monthly Incomes

The total amount of income or earnings received during a typical month, often used in financial and socioeconomic studies.