Nonparametric Procedures Are Usually Not Our First Choice Among Statistical

question 4

Multiple Choice

Nonparametric procedures are usually not our first choice among statistical procedures because

• A)the probability of making a Type I error is too high.
• B)the probability of making a Type II error is too high.
• C)nonparametric procedures are not inferential statistics.
• D)they are less powerful than parametric procedures.

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Definitions:

Political Business Cycle Theory

A theory suggesting that elected officials may manipulate economic policies to produce favorable economic conditions ahead of elections to increase their chances of reelection.

Discount Rate

The interest rate on the loans that the Fed makes to banks.

Re-Elected

The act of being elected again for the same position or office after completing a term.

Short-Run Phillips Curve

An economic model suggesting an inverse relationship between the rate of inflation and the unemployment rate in the short term.