Which of the Following Statements Is True

question 16

Multiple Choice

Which of the following statements is true?

• A)When approximating the sample mean for grouped data we assume that the midpoint of each class closely approximates the mean of observati ons in the class.
• B)When approximating the sample mean for grouped data we cannot assume that the midpoint of each class dosely approximates the mean of observations in the class.
• C) Descriptive measures for grouped data are not possible.
• D )None of these choices are correct.

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Definitions:

Equilibrium Price

The price at which the quantity of a product demanded by consumers equals the quantity supplied by producers.

Consumer Surplus

The divergence between the total payment consumers are willing to make for a product or service and what they really pay.

Demand Increase

A situation where consumers are willing and able to purchase more of a product or service at each price level, often caused by changes in tastes, income, or prices of related goods.

Consumer Surplus

The separation in monetary terms between what consumers are willing to pay for a good or service and their final payment amount.