Which of the Following Statements Are True

question 27

Multiple Choice

Which of the following statements are true?

• A) A confidence interval is always calculated by first selecting a confidence level, which is a measure of the degree of reliability of the interval.
• B) A confidence level of 95% implies that 95% of all samples would give an interval that includes the parameter being estimated, and only 5% of all samples would yield an erroneous interval.
• C) Information about the precision of an interval estimate is conveyed by the width of the interval.
• D) The higher the confidence level, the more strongly we believe that the value of the parameter being estimated lies within the interval.
• E) All of the above statements are true.

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Definitions:

Productive Efficiency

Productive efficiency occurs when an economy or entity produces goods and services at the lowest possible cost, utilizing all available resources without waste.

MB = MC

The principle that optimal decision-making is achieved when the marginal benefit equals the marginal cost.

Unintended Consequences

Outcomes of a policy or action that were not foreseen or intended, often contrary to the original objectives.

Allocating Resources

The process of distributing available resources among various competing needs or projects in an efficient manner.