Tom Is a Castaway Who Washes Up on a Remote

question 207

Multiple Choice

Tom is a castaway who washes up on a remote island. He can kill eight birds per hour or catch ten fish per day. The natives on the island can kill ten birds per day or catch twenty fish per day. The natives have a comparative advantage in:

• A)​hunting birds.
• B)​fishing.
• C)​both hunting birds and fishing
• D)​neither hunting birds or fishing.

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Definitions:

Level of Significance

A threshold within statistical hypothesis testing that determines whether to accept or reject the null hypothesis, paralleling the concept of a significance level but emphasizing its critical value in analysis.

Means

The average of a set of values, calculated by dividing the sum of the values by the number of values.

Populations

Refers to the entire group of individuals or items that are the subject of a statistical study.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it is used to determine the cutoff at which the test statistic is considered extreme.