Diet Programs
a Consumer Research Organization Will Evaluate the Results

question 103

Essay

Diet programs
A consumer research organization will evaluate the results of two diet programs,Take-It-Off and Melt-Away.Persons are randomly sampled from each of the programs and their weight loss results follow. $$\begin{array} { | c | c | } \hline \text { Take-It- Off } & \text { Melt-Away } \\\hline 150 & 130 \\75 & 68 \\40 & 20 \\68 & 54 \\30 & 27 \\& 98 \\\hline\end{array}$$
-The test question is: Do the data indicate that the two programs are equally effective? State the null and alternative hypotheses.
H₀: ____________________
H₁: ____________________

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Definitions:

Inflationary Gap

Occurs when equilibrium GDP is greater than full-employment GDP.

Equilibrium GDP

The level of Gross Domestic Product where aggregate supply equals aggregate demand, indicating a stable economy with no tendency for change in the price level or output.

Multiplier

Any change in spending (C, I, or G) will set off a chain reaction leading to a multiplied change in GDP. Equation is 1/(1 - MPC).

Federal Budget Deficit

A situation where the government's expenditures exceed its revenues over a specific fiscal period.