We Are Interested in Testing a Null Hypothesis About a Population

question 45

Multiple Choice

We are interested in testing a null hypothesis about a population mean  being equal to a specified value using a simple random sample of size 25.In the past the population variable has shown a slight tendency to non-Normality (slight skewness but no strong outliers) .Why can we safely use a t procedure in this testing situation?

• A)The sample standard deviation is robust against such things as outliers.
• B)The one-sample t procedure requires that the sample be selected using an SRS design,which is what was done in this case.
• C)The t procedures are quite robust against non-Normality,unless there are strong outliers.
• D)All of the above are reasons.
• E)Only B and C are justifications for using the t procedure here.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market stability.

Progressivity

A characteristic of a tax system in which the tax rate increases as the taxable amount increases, placing a larger burden on high-income earners.

Federal Payroll Tax

Taxes imposed by the federal government on the wages of employees, which fund social security and Medicare programs.

Equilibrium Price

The value at which there is a perfect match between how much of a good or service is wanted and how much is provided, leading to a state of market equilibrium.