A 99% Confidence Interval Estimate Can Be Interpreted to Mean

question 27

Multiple Choice

A 99% confidence interval estimate can be interpreted to mean that

• A) if all possible samples are taken and confidence interval estimates are developed, 99% of them would include the true population mean somewhere within their interval.
• B) we have 99% confidence that we have selected a sample whose interval does include the population mean.
• C) both of the above
• D) none of the above

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Definitions:

Substitution Effect

The change in consumption patterns due to a change in price, leading consumers to substitute one product for another.

Real Balance Effect

An economic theory suggesting that inflation or deflation changes individuals' purchasing power, affecting their real income and consumption patterns.

Marginal Utility

The additional satisfaction or utility gained by consuming one more unit of a good or service.

Total Utility

The total satisfaction received from consuming a given total quantity of a good or service.