ECON 103 Lecture 1: Rustici Test One Price Theory

Compare and contrast the Breusch-Pagan test and the White test. When would one test be preferred to another?

A Burger King franchise owner notes that the sales per store have fallen below the stated national Burger King outlet average of $1,258,000. He asserts a change has occurred that reduced the fast-food eating habits of Americans. What is his hypothesis (H1) and what type of test for significance must be applied? 

A. H1: u = $1.258,000 A one-tailed t-test to the left.

B. H1: u = $1.258,000 A two-tailed t-test.

C. H1: u < $1.258,000 A one-tailed t-test to the left.

D. H1: p < $1.258,000 A one-tailed test to the right.

One test of a successful strategy is to measure performance in marketing. What would you measure? Explain