Ollie South Has an Endowment of 10 Guns and 10

question 29

Multiple Choice

Ollie South has an endowment of 10 guns and 10 pounds of butter.He can buy or sell butter at $1 a pound.But the world market for guns is more complicated: he can buy guns for $5 each, but he can sell guns for only $2.If we graph his budget line with guns on the horizontal axis and butter on the vertical axis, then Ollie's budget line is a straight line

• A)joining (12, 0)and (0, 30).
• B)joining (14, 0)and (0, 14).
• C)with slope - 2/5 through the point (10, 10).
• D)with slope - 5/2 going through the point (10, 10).
• E)None of the above.

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Definitions:

Test Statistic

A calculated value that is used in statistical tests to determine whether to reject the null hypothesis, based on sample data.

P-Value

The probability of getting the observed value of the test statistic, or one more extreme, assuming the null hypothesis is true.

Level Of Significance

The probability of rejecting the null hypothesis when it is true, typically set as a threshold like 0.05 or 0.01 before conducting a hypothesis test.

Sample Size

Refers to the number of observations or elements selected from a population to conduct a study.