Refer to the Following Table When Answering
Table

question 12

Multiple Choice

Refer to the following table when answering
Table 2.4: U.S. and Eurozone Nominal GDP in 2011
$$\begin{array} { l | c } \hline & 2011 \\\hline \text { Eurozone nominal GDP (€ billions) } & € 13,144 \\\text { U.S. nominal GDP (\$ billions) } & \$ 15,100 \\\text { Dollar/euro exchange rate } & \$ 1.28 \text { /€1 } 1 \\\text { PEz } & \\& \\& \\\text { /Pus } & 0.96 \\\hline\end{array}$$
-Consider the data in Table 2.4. When we convert the Eurozone's nominal GDP into dollars but do NOT adjust for price differences, the U.S. economy is about ________ times ________ than the Eurozone economy.

• A) 1.15; smaller
• B) 1.64; smaller
• C) 1.15; bigger
• D) 1.11; smaller
• E) 1.09; bigger

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Definitions:

Type II Error

The error that occurs when the null hypothesis is falsely accepted, failing to detect an effect or difference when one actually exists.

Null Hypothesis

The hypothesis in statistical analysis that posits no significant difference or relationship exists among groups or variables being studied.

P-Value

The chance of receiving test results that are as extreme or exceed the extremity of those actually observed, with the null hypothesis assumed to be true.

Significance Level

The likelihood of mistakenly dismissing the null hypothesis, typically represented by alpha, when in truth it holds.