You Want to Test the Hypothesis That the Prime Rate

question 12

Multiple Choice

You want to test the hypothesis that the prime rate and inflation are independent.The following table is prepared for the test on the basis of the results of a random sample,collected in various countries and various time periods: The expected frequency for the shaded cell is:

• A) 22.5.
• B) 30.
• C) 40.
• D) 40.5.

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Definitions:

Marginal Social Cost

The cost to society of producing one additional unit of a good or service, incorporating both the private costs and any external costs.

Consumer Surplus

The gap observed between the consumer's desired price for a good or service and the price that is actually paid.

Marginal Benefit

The extra benefit or pleasure that someone receives from using an additional unit of a specific good or service.

Marginal Cost

The increase in cost resulting from the production of one additional unit of a good or service.