Exhibit 19-2 Students in Statistics Classes Were Asked Whether They Preferred a Preferred

question 13

Multiple Choice

Exhibit 19-2
Students in statistics classes were asked whether they preferred a 10-minute break or to get out of class 10 minutes early. In a sample of 150 students, 40 preferred a 10-minute break, 80 preferred to get out 10 minutes early, and 30 had no preference. We want to determine if there is a difference in students' preferences.
-Refer to Exhibit 19-2. To test the null hypothesis, the appropriate probability distribution to use is the

• A)normal
• B)chi-square
• C)t distribution
• D)binomial

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Definitions:

Wealth Effect

The wealth effect is the change in consumer spending and economic behavior resulting from changes in perceived wealth, typically due to asset price variations.

Aggregate-Demand Curve

A curve that represents the total demand for all goods and services in an economy at various price levels.

Liquidity Preference Theory

is the hypothesis that investors prefer to have liquid rather than illiquid assets and will demand higher yields for longer-term securities that are less liquid.

Aggregate Demand Curve

A graph showing the total demand for goods and services within an economy at different price levels.