When an Individual Quits His Job and Decides to Look

question 193

Multiple Choice

When an individual quits his job and decides to look for a new job immediately, the labor-force participation rate

• A) decreases.
• B) increases.
• C) stays the same.
• D) may increase or decrease, depending on the length of time he/she stays at home.

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Definitions:

Chi-squared Distributed

A distribution used in hypothesis testing that is derived from the sum of squared deviations between observed and expected frequencies.

Degrees of Freedom

The number of independent values or quantities that can vary in the calculation of a statistic, often associated with the number of observations minus the number of parameters estimated.

Population Variance

The average of the squared differences from the mean for every individual in an entire population, quantifying the overall variation within that population.

Hypotheses Test

A statistical method that uses sample data to evaluate a hypothesis about a population parameter.