Last Year,Max Bought 6 Pairs of Athletic Shoes When His

question 58

Multiple Choice

Last year,Max bought 6 pairs of athletic shoes when his income was $35,000.This year,his income is $42,000,and he purchased 8 pairs of athletic shoes.Holding other factors constant,it follows that Max

• A)considers athletic shoes to be necessities.
• B)considers athletic shoes to be inferior goods.
• C)considers athletic shoes to be normal goods.
• D)has a low price elasticity of demand for athletic shoes.

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Definitions:

Hypothesis Testing

The process of making decisions or inferences about a population based on sample data, often involving the use of a statistical test.

Test Statistic

A measure calculated from sample data during a hypothesis test used to determine whether to reject the null hypothesis.

T-Distribution

A probability distribution that arises when estimating the mean of a normally distributed population in situations where the sample size is small and population standard deviation is unknown.

Confidence Interval

A set of numerical values, obtained from statistical analysis of a sample, which is expected to encompass the actual value of a parameter from a larger, unspecified population.