Suppose That a Special Interest Group Makes Up 2% of the Population

question 223

Multiple Choice

Suppose that a special interest group makes up 2% of the population. If a policy transfers $600 to the special interest at a cost of $100,000 to society, will the special interest group lobby for this policy?

• A) Yes, the benefits of $700 outweigh the costs of $42.
• B) No, the benefits of $600 are less than the costs of $2,000.
• C) They'll be indifferent since the benefits equal the costs.
• D) No, the benefits of $600 are less than the costs of $100,000.

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Definitions:

Corporate Executives

High-ranking officials within a corporation who are responsible for making major decisions and implementing policies.

Resamples

The process of drawing repeated samples from a set of observed data, typically for the purpose of making statistical inferences or estimates.

Bootstrap

A statistical method that involves resampling a single dataset to create many simulated samples, used in assessing variability.

Mean

The average of a set of numbers, calculated by dividing the sum of these numbers by the count of numbers in the set.