We Are Interested in Testing the Following Hypotheses $\mu$ ₁- $\mu$ ₂ = 0
H_a

question 46

Multiple Choice

We are interested in testing the following hypotheses.
H₀: $\mu$ ₁- $\mu$ ₂ = 0
H_a: $\mu$ ₁- $\mu$ ₂ ? 0
The test statistic Z is computed to be 1.85. The p-value for this test is

• A)0.4678
• B)0.9678
• C)0.0322
• D)0.0644

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Definitions:

Private Market

A market in which transactions occur directly between private sector buyers and sellers without significant government regulation or intervention.

Marginal Social Benefit

The additional benefit to society as a whole from producing or consuming one more unit of a good.

Public Good

A product or service that is provided without profit to all members of a society, either by the government or a private individual or organization, characterized by non-excludability and non-rivalry.

Marginal Social Cost

The total cost to society of producing an additional unit of a good or service.