Suppose That the Price of Good X Increases from $3

question 95

Multiple Choice

Suppose that the price of good X increases from $3.00 to $4.00 while the price of good Y increases from $150 to $200. The relative price of X (in terms of Y)

• A)has risen.
• B)remained constant.
• C)has fallen.
• D)cannot be determined from the above data.
• E)is completely unrelated to the price of good Y.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, showing how much each value in the set varies from the mean.

Binomial Populations

Populations for which the outcomes can be classified into two categories (success/failure) and the number of successes in a set number of trials can be predicted.

SRS

Stands for Simple Random Sample, a sampling method where each member of the population has an equal chance of being selected.

Confidence Interval

A range of values derived from sample data that is believed, with a certain level of confidence, to contain the true value of the population parameter.