Suppose That 6 Economists Who Work for the Federal Government

question 18

Multiple Choice

Suppose that 6 economists who work for the federal government and 7 university economists were asked to predict the percentage change in the Canada's GDP over the three year period from January 2010 to January 2013. The Wilcoxon rank-sum test was used to determine if the two groups differ in their predictions. The value of the test statistic was calculated to be 29.5. At α = 0.05, we can conclude that

• A) The null hypothesis should be rejected.
• B) The null hypothesis should not be rejected.
• C) There is a difference in predictions provided by the two groups of economists.
• D) The null hypothesis should be rejected and that there is a difference in predictions provided by the two groups of economists.
• E) The null hypothesis should not be rejected and that there is not a difference in predictions provided by the two groups of economists

---

Definitions:

Material Price Variance

The difference between the actual cost of direct materials used in production and the standard cost of those materials.

Standard Purchase Price

The predetermined cost of acquiring goods, set for budgeting and costing purposes.

Actual Purchase Price

Actual Purchase Price refers to the actual amount paid for goods or materials, including additional costs such as delivery charges and taxes.

Direct Material

Primary raw materials that can be specifically identified and directly charged to the manufacturing of a specific product.