Let P Denote the Proportion of Individuals in a Population

question 12

Multiple Choice

Let p denote the proportion of individuals in a population who possess a specified property, and let X denote the number of individuals in the sample who possess the same property. Provided that the sample size n is small relative to the population size, X has approximately

• A) a normal distribution
• B) a binomial distribution
• C) an exponential distribution
• D) a Poisson distribution

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Definitions:

Net Social Gain

The total benefit to society after subtracting the costs associated with an economic activity or policy.

Consumer Surplus

The distinction between what consumers are inclined and financially able to pay for a service or good and the actual payment made.

Welfare Loss

The decrease in social welfare, usually measured as lost economic efficiency, due to factors like taxes, subsidies, or market distortions.

Welfare Loss

The decrease in social welfare, usually measured as the loss of consumer and producer surplus, resulting from inefficient market conditions or government policies.