A Population Has a Mean of 84 and a Standard

question 23

Multiple Choice

A population has a mean of 84 and a standard deviation of 12. A sample of 36 observations will be taken. The probability that the sample mean will be between 80.54 and 88.9 is _____.

• A) .0347
• B) .7200
• C) .9511
• D) None of the answers is correct.

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Definitions:

Substitution Effect

The substitution effect occurs when consumers replace more expensive items with less costly alternatives.

Income Effect

A change in the quantity demanded of a good or service as a result of a change in real income (purchasing power).

Inferior Good

A type of good for which demand declines as the income of individuals or the economy increases, opposite to normal goods.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute a cheaper good for a more expensive one.