Suppose We Test the Difference Between Two Proportions at the 0.05

question 92

Multiple Choice

Suppose we test the difference between two proportions at the 0.05 level of significance. If the z test statistic is -1.07, what is our decision?

• A) Reject the null hypothesis
• B) Do not reject the null hypothesis
• C) Take a larger sample
• D) Reserve judgment

---

Definitions:

Consumer Surplus

The discrepancy in the total sum consumers are willing to offer for a good or service compared to what they actually offer.

Producer Surplus

The difference between the amount producers are willing and able to supply a good for and the amount they actually receive.

Market Price

The amount of money a buyer pays and a seller receives for a product or service in a competitive marketplace.

Producer Surplus

The difference between the amount a producer is paid for a good compared to the minimum amount they would be willing to accept, representing profit.