What Is the First Step in Applying the Sign Test

question 20

Multiple Choice

What is the first step in applying the sign test?

• A) Rank the paired data from high to low or vice versa
• B) Apply a correction factor to each observation
• C) Determine sign of difference between each observed pair of data
• D) Determine the number of degrees of freedom

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Definitions:

Fixed Costs

Costs that do not change with the level of output produced, such as rent, salaries, and loan payments.

Long Run

A period of time sufficiently long that all inputs or factors of production can be varied by firms, allowing them to fully adjust to market conditions.

Variable Costs

Expenses that vary directly with the amount of production or business activity.

Fixed Costs

Costs that do not change with the level of output or production, such as rent or salaries.