Moe Has a Big Exam Tomorrow

question 33

Multiple Choice

Moe has a big exam tomorrow. He considered studying this evening, but decided to go out with Curly instead. Since Moe always chooses rationally, it must be true that:

• A) the opportunity cost of studying tonight is less than the value Moe gets from spending time with Curly.
• B) the opportunity cost of studying tonight is equal to the value Moe gets from spending time with Curly minus the cost of earning a low grade on the exam.
• C) Moe gets more benefit from spending time with Curly than from studying.
• D) Moe gets less benefit from spending time with Curly than from studying.

---

Definitions:

P-Value

The p-value is a measure in statistics that helps determine the significance of results from a hypothesis test, indicating the probability of observing the results given that the null hypothesis is true.

Level Of Significance

A threshold or criterion for judging whether a statistical result is significant, commonly set at values like 0.05 or 0.01, indicating the risk of a Type I error.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, tested against to determine the likelihood of the alternative hypothesis.

One-Tail Test

A statistical test in which the region of rejection is on only one side of the sampling distribution, used to determine if a parameter is greater than or less than a certain value.