Doubling the Population Standard Deviation $\sigma$ Has the Effect of Doubling the Width of the Confidence

question 113

True/False

Doubling the population standard deviation $\sigma$ has the effect of doubling the width of the confidence interval estimate of $\mu$ .

---

Definitions:

Marginal Expenditure Curve

A graph that shows the additional cost of purchasing one more unit of a good or service.

Labor Supply Curve

The graphical representation of the relationship between different levels of wage and the quantity of labor willing to be supplied.

Monopsony

A market situation where there is only one buyer facing many sellers.

Economic Rent

Earnings exceeding the minimum amount required to keep a factor of production in its current use.