Table 5-7 The Following Table Shows a Portion of the Demand Schedule

question 252

Multiple Choice

Table 5-7
The following table shows a portion of the demand schedule for a particular good at various levels of income.
-Refer to Table 5-7. Using the midpoint method, when income equals $7,500, what is the price elasticity of demand between $16 and $20?

• A)0.56
• B)0.75
• C)1.33
• D)1.80

---

Definitions:

Type II Error

The mistake of failing to reject a false null hypothesis in a statistical test, also known as a false negative.

Control Chart

A tool used in quality control processes to monitor, control, and improve the process quality by plotting data points in time order and identifying any signals of unusual variation.

Type Error

Often refers to a Type I or Type II error in statistical hypothesis testing, misidentification of a true condition.

Null Hypothesis

In statistical hypothesis testing, it is the hypothesis that there is no effect or no difference, and any observed deviation is due to chance.