Diminishing Marginal Utility of Wealth Implies That the Utility Function

question 84

Multiple Choice

Diminishing marginal utility of wealth implies that the utility function

• A)has increasing slope and a person is risk averse.
• B)has increasing slope and a person is not risk averse.
• C)has decreasing slope and a person is risk averse
• D)has decreasing slope and a person is not risk averse.

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Definitions:

Null Hypotheses

A statistical hypothesis that assumes no significant difference or effect exists within a set of given observations.

Type I Error

The error that occurs when a null hypothesis is incorrectly rejected when it is actually true, often referred to as a "false positive."

Type II Error

The statistical mistake of failing to reject a false null hypothesis. It's also known as the error of accepting a false negative result.

Type I Error

Incorrectly refuting a correct null hypothesis, also labeled as a "false positive."