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What Kinds of Questions Can You Answer Using Tests of Significance

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What kinds of questions can you answer using tests of significance for measures of association?


Definitions:

Income Elasticity

A measure of how much the quantity demanded of a good changes in response to a change in consumers' income.

Demand Inelastic

When the quantity demanded of a good or service is relatively unchanged in response to price changes.

Directly Related

A situation where two variables move in the same direction, meaning if one increases, the other also increases and vice versa.

Price Inelastic

Describes a situation where the demand for a good is not significantly affected by changes in its price.

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