In a Statistical Test We

question 72

Multiple Choice

In a statistical test we:

• A)try to reject the null hypothesis.
• B)try to prove the alternative hypothesis.
• C)choose a null hypothesis that is easy to reject.
• D)choose a large level of significance if possible.

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Definitions:

Average Cost

The total cost of production divided by the quantity of output produced, also known as the cost per unit.

Marginal Cost

The escalation in aggregate cost that comes from generating one more unit of a product or service.

Fixed Cost

Costs that do not change with the amount of goods or services produced by a business.

Variable Cost

Costs that vary directly with the level of production or volume of output.