To Produce 100 Bushels of Wheat, Farmer a Requires Fewer

question 149

True/False

To produce 100 bushels of wheat, Farmer A requires fewer inputs than does Farmer B. We can conclude that Farmer A has an absolute advantage over Farmer B in producing wheat.

---

Definitions:

Hypothesis Testing

A statistical method used to decide whether a hypothesis about a parameter in a population is supported by the data gathered from a sample.

Test Statistic

A numerical value employed in statistical hypothesis testing for deciding if the null hypothesis should be discarded.

Confidence Interval

A range of values, determined from sample statistics, that is believed to contain the true population parameter with a certain probability.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it marks the threshold for statistical significance.