You Want to Test the Hypothesis That the Prime Rate

question 47

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: What is the value of the test statistic?

• A) 306.25
• B) 0.00
• C) 54.44
• D) 13.61

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Definitions:

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariffs, quotas, or prohibitions.

Comparative Advantage

The ability of an individual or country to produce a particular good or service at a lower marginal cost than others.

Production Possibilities

Various combinations of goods and services that can be produced within an economy given available resources and technology.

Economies Of Scale

The cost advantage achieved by producing goods in large quantities, hence reducing the cost per unit.