When We State the Alternative Hypothesis to Look for a Difference

question 30

Multiple Choice

When we state the alternative hypothesis to look for a difference in a parameter in any direction,we are doing a _____.

• A)one-sided test
• B)two-sided test
• C)None of the above

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Definitions:

Marginal Social Cost

The total cost to society of producing an additional unit of a good or service, taking into account both private costs and any externalities.

Private Marginal Cost

The cost incurred by a firm or individual for producing one additional unit of a good or service, not including external costs.

Traffic Congestion

Refers to the situation where there are more vehicles than the road can accommodate, leading to slower speeds, longer trip times, and increased vehicular queuing.

Marginal Social Cost

The total cost incurred by society when the production of a good or service is increased by one additional unit, including both private and external costs.