A Good Economic Theory

question 102

Multiple Choice

A good economic theory

• A)has realistic assumptions
• B)contains as much detail as possible
• C)cannot be proven false
• D)predicts well
• E)can only be presented in mathematical terms

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Definitions:

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the population parameter with a specified level of confidence.

Null Hypothesis

A statement used in hypothesis testing that assumes no effect or no difference exists between two or more sets of data.

Hypothesized Value

A specific value proposed as existing or being true within the context of a statistical hypothesis test.

Null Hypothesis

A default statement that indicates no effect, difference, or relationship between two or more variables in an experiment.