The Benefit of a One-Unit Increase in an Activity

question 315

Multiple Choice

The benefit of a one-unit increase in an activity

• A) is called marginal cost.
• B) is always greater than the opportunity cost of that activity.
• C) decreases as you do more of it.
• D) is measured by what you must give up.
• E) is called rational-choice benefit.

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Definitions:

P-values

P-values provide the probability of obtaining an effect at least as extreme as the one in your sample data, assuming the truth of the null hypothesis.

Standard Error

A statistic that measures the average distance that a sample statistic, such as the mean, deviates from the actual population mean.

Alternative Hypothesis

A statement that contradicts the null hypothesis and is tested directly in a hypothesis testing framework, assuming the null hypothesis is false.

T Procedure

A statistical test used to determine if there is a significant difference between the means of two groups when the variances are unknown and assumed to be equal.