Table 2-14 Table 2-14 Shows the Number of Labor Hours

question 283

Multiple Choice

Table 2-14
Table 2-14 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.
-Refer to Table 2-14. What is Scotland's opportunity cost of producing one motorcycle?

• A) 0.25 guitar
• B) 4 guitars
• C) 12 guitars
• D) 16 guitars

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Definitions:

P-value

The probability of observing the tested result, or one more extreme, if the null hypothesis is true.

α

Typically represents the level of significance in hypothesis testing, indicating the probability of rejecting the null hypothesis when it is true.

Type I Error

The statistical mistake of rejecting a null hypothesis when it is actually true, also known as a "false positive".

Type II Error

The error that occurs when the null hypothesis is falsely not rejected, missing the detection of an actual effect.