Karl Can Produce Either 10 Tons of Oranges or 5

question 6

Multiple Choice

Karl can produce either 10 tons of oranges or 5 tons of apples in a year, while Adam can produce either 5 tons of oranges or 10 tons of apples. Which of the following is true in this case?

• A)Adam has an absolute advantage in oranges.
• B)Karl has a comparative advantage in oranges.
• C)Karl has an absolute advantage in apples.
• D)Karl has a comparative advantage in apples.
• E)Adam has a comparative advantage in oranges.

---

Definitions:

Wilcoxon Rank Sum Test

A nonparametric statistical test that compares two independent samples to determine if they come from the same distribution.

Shift In Distribution

A change in the overall distribution of a set of data or population, often indicating a significant change in the mean, variance, or shape of the distribution.

Rejection Region

The range of values for which the null hypothesis is considered unlikely and is therefore rejected in hypothesis testing.

Wilcoxon Rank Sum Test

The Wilcoxon Rank Sum Test is a non-parametric statistical test used to compare two independent samples to assess if their population mean ranks differ.