Suppose You Are a Star Basketball Player at a Major

question 14

Multiple Choice

Suppose you are a star basketball player at a major university in your sophomore year. You are sought after by several NBA teams. Which of the following choices best characterizes your opportunity cost if you choose to drop out of college and enter the NBA?

• A)The value of your college scholarship that you have given up.
• B)The skills that two more years of playing at your college would have given you along with their additional value over the rest of your life, in addition to the educational value of the college degree.
• C)The total of explicit costs that have been incurred in the past.
• D)The total of implicit costs that have been incurred in the past.

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Definitions:

Dependent-Samples T-Test

A statistical procedure used to compare means from the same group at two different times or under two different conditions.

Regression

A statistical method that models the relationship between a dependent variable and one or more independent variables, predicting the former based on the latter.

Analysis of Variance

A statistical method used to test differences between two or more means by analyzing variance.

Independent Samples T-Test

A statistical test used to compare the means of two independent groups in order to determine if there is a statistically significant difference between them.