Suppose That We Wish to Test the Null Hypothesis That

question 113

Multiple Choice

Suppose that we wish to test the null hypothesis that for 3 cells, A, B, and C, the cell categories are equal. We observed 8 data in cell A, 13 in cell B, and 9 in cell C. What is the decision rule using the 0.05 significance level?

• A) 7.815
• B) 5.991
• C) 43.773
• D) 42.557

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Definitions:

Diseconomies of Scale

A situation in which a company or business grows so large that the costs per unit increase.

Long-run ATC

Long-run Average Total Cost refers to the per-unit cost of production in the long term where all inputs are considered variable.

Rate of Return

The rise or fall in an investment's worth over a designated period, articulated as a percentage of the cost of the investment.

Natural Monopolies

Natural monopolies occur in industries where the costs of production are lowest when a single firm supplies all the output, such as utilities companies.