Twenty Economists Were Sampled and Asked to Predict If the National

question 57

Multiple Choice

Twenty economists were sampled and asked to predict if the national economy would improve during the next 12 months. Eleven of the economists predicted an increase, two economists predicted no change, and seven economists predicted a decrease in the economy. Conduct a hypothesis test at the 0.10 significance level to determine if the majority of economists predict an increase. The correct analysis would be:

• A) a sign test based on the binomial distribution.
• B) a sign test based on the standard normal distribution.
• C) a chi-square test.
• D) a Wilcoxon signed-rank test.

---

Definitions:

Pleasure

A feeling of happiness, satisfaction, or enjoyment derived from various activities or experiences.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit, often involving the purchase of stocks, bonds, or real estate.

Interest Rate

is the cost of borrowing money or the compensation for the service and risk of lending money, expressed as a percentage of the amount borrowed.

Wine Drinkers

Individuals or groups who consume wine, not a specific economic term but may be analyzed in market studies related to beverage consumption.