If We Are Interested in Testing Whether the Proportion of Items

question 15

Multiple Choice

If we are interested in testing whether the proportion of items in population 1 is larger than the proportion of items in population 2, the

• A)null hypothesis should state P₁ - P₂ < 0
• B)null hypothesis should state P₁ - P₂ > 0
• C)alternative hypothesis should state P₁ - P₂ > 0
• D)alternative hypothesis should state P₁ - P₂ < 0

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Definitions:

Supply Of Loanable Funds Curve

A graphical representation showing the relationship between the interest rate and the total amount of savings available for lending in the financial market.

Demand For Loanable Funds Curve

The demand for loanable funds curve illustrates the relationship between the interest rate and the quantity of loanable funds demanded by borrowers, showing how borrowing can decrease as interest rates rise.

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, usually on an annual basis.

Loanable Funds

The funds in financial institutions that are available for borrowing.