Wilma Has a Valid Driver's License but Has a Tendency

question 39

Multiple Choice

Wilma has a valid driver's license but has a tendency to get speeding tickets.Fred tells her that he will pay her $1,000.00 if she does not get a ticket for one year.Wilma drives very cautiously and goes one year without a ticket.Is Fred obligated to pay?

• A) yes, because Wilma gave up a legal right based on the agreement
• B) no, because $1,000.00 is not an adequate amount based on Wilma's detriment
• C) no, because Wilma suffered no detriment in this agreement
• D) yes, because a promise is a promise and consideration has nothing to do with this agreement

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Definitions:

Test Statistic

A value calculated from sample data during a hypothesis test, used to make a decision about the null hypothesis.

P-Value

A statistical measure that helps to determine the strength of the results to support or reject the null hypothesis.

Null Hypothesis

A hypothesis that assumes there is no statistical significance in a set of given observations and that any observed difference is due to sampling or experimental error.

P-Value

The probability of obtaining test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is true.