Twenty Economists Were Sampled and Asked to Predict If the National

question 18

Multiple Choice

Twenty economists were sampled and asked to predict if the national economy would improve during the next 12 months. Eleven of the economists predicted an increase,two economists predicted no change,and seven economists predicted a decrease in the economy. Conduct a hypothesis test at the 0.10 significance level to determine if the majority of economists predict an increase. The null hypothesis is ________.

• A)H₀ : π = 0.5
• B)H₀ : π ≠ 0.5
• C)H₀ : π ≤ 0.5
• D)H₀ : π ≥ 0.5

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Definitions:

Complete

Fully accomplished or having all necessary parts or steps.

Transitivity

Transitivity in decision making refers to the consistency among choices, where if option A is preferred over B and B over C, then A should be preferred over C.

Indifference Curves

Graphical representations used in microeconomics to show different combinations of two goods that give a consumer equal satisfaction and utility.

Marginal Rate

Marginal Rate often refers to the additional cost or benefit associated with a slight increase in production or activity, influencing decisions in finance and economics.