In Testing the Hypothesis H₀ $\mu$ =100 VsH₁ $\mu$ > 100,the P-Value Is Found to Be 0

question 97

Multiple Choice

In testing the hypothesis H₀: $\mu$ =100 vs.H₁: $\mu$ > 100,the p-value is found to be 0.074,and the sample mean is 105.Which of the following statements is true?

• A) The probability of observing a sample mean at least as large as 105 from a population whose mean is 100 is 0.074.
• B) The probability of observing a sample mean smaller than 105 from a population whose mean is 100 is 0.074.
• C) The probability that the population mean is larger than 100 is 0.074.
• D) None of these choices.

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Definitions:

Status Quo Bias

The tendency for people to prefer things to stay the same by doing nothing or sticking with a decision made previously.

Prospect Theory

A psychological theory that describes how people make decisions based on the potential value of losses and gains rather than the final outcome.

Endowment Effect

A psychological phenomenon where people ascribe more value to things merely because they own them.

Prospect Theory

A behavioral economic theory that describes how people make decisions under conditions of risk and uncertainty, prioritizing losses differently from gains.