Which of the Following Confidence Intervals Has the Most Precision

question 86

Multiple Choice

Which of the following confidence intervals has the most precision?

• A) 99% confidence interval
• B) 95% confidence interval
• C) 90% confidence interval
• D) 85% confidence interval

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Definitions:

Inelastic

Describes a situation where the demand or supply for a good or service is not significantly altered when the price of that good or service changes.

Total Revenue

The total amount of money received by a company for goods sold or services provided during a certain period of time.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level.

Unit Elasticity

A situation where a percentage change in price leads to an equal percentage change in quantity demanded or supplied.