Suppose Two Simultaneous Random Surveys Were Taken of a Mid

question 13

Multiple Choice

Suppose two simultaneous random surveys were taken of a mid sized city to determine public acceptance of a proposed ballot measure. Survey X covered 1000 voters, and Survey Y covered 2000 voters. How would you expect the surveys to compare for accuracy?

• A) There is no way of knowing how the two surveys compare.
• B) The two surveys are equally accurate.
• C) Survey Y is 4 times more accurate than Survey X.
• D) Survey Y is twice as accurate as Survey X
• E) Survey Y is probably about one percentage point more accurate than Survey X.

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Definitions:

Willingness-to-Pay

The maximum amount a consumer is prepared to spend on a good or service.

Natural Monopoly

A market condition where due to high fixed costs or unique resources, a single company can supply a product or service at a lower cost than any potential competitors.

Average Cost

The cost per unit of output, computed by dividing the total cost of production by the number of units produced, often used to assess the efficiency and profitability of production processes.

Antitrust Laws

Legislation enacted to prevent new monopolies from forming and to break up those that already exist in order to ensure fair competition in the market.