Suppose You Send Out 350 Surveys to Random Sample of All

question 21

Multiple Choice

Suppose you send out 350 surveys to random sample of all past customers (your target population) asking them to report their level of satisfaction with your product. Of the 350, you used the 112 that responded to the survey to construct a confidence interval for the population "satisfaction score." What might be a potential problem with this confidence interval?

• A) Predictable-world bias
• B) Satisfaction scores are inherently variable.
• C) There is likely to be skewness in the sample.
• D) The sample you're using is not a random sample from the target population.

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Definitions:

Elastic Demand

A demand situation where the percentage change in the quantity demanded of a good or service is greater than the percentage change in its price.

Inelastic Demand

Product or resource demand for which the price elasticity of demand is less than 1, so that any given percentage change in price leads to a smaller percentage change in quantity demanded. As a result, quantity demanded is relatively insensitive to (inelastic with respect to) price.

Financial Aid

Financial support provided to individuals to help cover the costs of education or other personal expenses.

Price Elastic

Describes how sensitive the demand for a good is to changes in its price; highly elastic demand means consumers will significantly reduce buying with small price increases.