Consider Two Individuals - Marquis and Serena - Each of Whom

question 31

Multiple Choice

Consider two individuals - Marquis and Serena - each of whom would like to wear sweaters and eat tasty food.The gains from trade between Marquis and Serena are most obvious in which of the following cases?

• A)Marquis is very good at knitting sweaters and at cooking tasty food,but Serena's skills in both of these activities are very poor.
• B)Marquis and Serena both are very good at cooking tasty food,but neither has the necessary skills to knit a sweater.
• C)Marquis's cooking and knitting skills are very poor,and Serena's cooking and knitting skills are also very poor.
• D)Marquis's skills are such that he can produce only sweaters,and Serena's skills are such that she can produce only tasty food.

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Definitions:

Sign Test

A non-parametric test used to evaluate the difference between paired samples, based on the direction of the differences between the pairs, not their magnitude.

T Test

A statistical test used to compare the means of two groups or the mean of one group with a known value, under the assumption of normally distributed data.

T Procedure

A statistical method used to test the mean of a population, especially useful when dealing with small sample sizes and unknown population standard deviations.

Outliers

Data points that significantly deviate from the other observations in a dataset, potentially indicating measurement error or an unusual event.