Consider the Following Information About the Price and the Price

question 48

Multiple Choice

Consider the following information about the price and the price index of a popular book over three years. If the price index in 2011 was 95 instead of 111.11,it would imply that _______________________________________.

• A) the price of the book in 2011 was 16.11% lower than its price in 2009
• B) 2011 would be considered as the base year
• C) the price of the book in 2011 was 5% lower than its price in 2009
• D) the price of the book in 2011 would be $4

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Definitions:

Left-tailed Wilcoxon Rank Sum Test

A nonparametric test used to assess whether one of two groups of independent samples tends to have lower values than the other.

Test Statistic

A calculated value from sample data used to test a hypothesis against a null hypothesis.

Independent Samples

Two or more groups of samples that are collected from separate populations and are not related or paired in any way.

Significance Level

The threshold below which a p-value results in the rejection of a null hypothesis, indicating statistical significance; commonly set at 0.05 or 5%.