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Assume that a government is considering a new social program and may choose to include in this program one of four progressively larger projects. The marginal cost and the marginal benefits of each of the four projects are given in the table below. Which project should the government select to achieve the maximum net benefit?
Nonparametric Tests
Statistical tests that do not assume a specific distribution for the data, often used when data do not meet the assumptions required for parametric tests.
Nonparametric Statistics
A branch of statistics that does not assume a specific distribution for the population from which the sample is drawn.
Assumptions
Premises or conditions that are accepted as true or as certain to happen, without proof, within the context of a specific model or method.
Null Hypothesis
A statistical hypothesis that assumes no significant difference or effect exists between certain characteristics of a population or data set.
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