Which Condition Must Be Met to Conduct a Test for the Difference

question 49

Multiple Choice

Which condition must be met to conduct a test for the difference in two sample means using a z-statistic?

• A)The data must be at least of nominal scale.
• B)The populations must be normal.
• C)The two population standard deviations must be known.
• D)The samples are dependent.

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Definitions:

Labor Supply Curve

A graphical representation showing the relationship between the different levels of wages and the quantity of labor workers are willing to supply.

Income Effect

A person’s willingness to give up some income in exchange for more leisure time.

Substitution Effect

If the price of a resource, say labor, goes up, business firms tend to substitute capital or land for some of their now-expensive workers. Also, the substitution of more hours of work for leisure time as the wage rate rises.

Substitution Effect

The economic principle that as prices rise, consumers will replace costlier items with less expensive alternatives, holding the utility they receive constant.