When Is the T Distribution Used Instead of the Z

question 48

Multiple Choice

When is the t distribution used instead of the Z distribution to test the significance of the difference between two sample means?

• A)never
• B)when sample size is very large
• C)when one sample is much larger than the other
• D)when N is small

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Definitions:

Positive Externality

A benefit that affects someone who did not choose to incur that benefit, often leading to an under-provision of a good or service.

Vaccination

A medical intervention that introduces a substance to stimulate the body's immune response against disease.

Producer Surplus

The discrepancy between what sellers are prepared to take for a product or service and the actual payment they get in the marketplace.

Efficiency Loss

The loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is not achievable.