Which of the Following Statements Is True of Geographical Clustering

question 9

Multiple Choice

Which of the following statements is true of geographical clustering?

• A) The proximity of many competitors serving a local market leads to competition that increases their pricing power in their relationships with both buyers and suppliers.
• B) Close proximity of firms eliminates the likelihood of a firm's competitors gaining access to the firm's proprietary knowledge.
• C) Clustering invariably leads to lower concentration of pollution and inordinately low housing costs.
• D) Proximate firms have an advantage in sharing information that can lead to greater innovation productivity.

---

Definitions:

Null Hypothesis

A hypothesis in statistical testing that proposes there is no significance difference or effect and that any observed difference is due to chance.

P-value

The probability of observing the tested result, or one more extreme, if the null hypothesis is true.

α

Typically represents the level of significance in hypothesis testing, indicating the probability of rejecting the null hypothesis when it is true.

Type I Error

The statistical mistake of rejecting a null hypothesis when it is actually true, also known as a "false positive".