An Economist Is Interested in Studying the Incomes of Consumers

question 95

Multiple Choice

An economist is interested in studying the incomes of consumers in a country.The population standard deviation is known to be $1,000.A random sample of 50 individuals resulted in a mean income of $15,000.What total sample size would the economist need to use for a 95% confidence interval if the width of the interval should not be more than $100?

• A)n = 1537
• B)n = 385
• C)n = 40
• D)n = 20

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Definitions:

Cash Position

The total amount of liquid assets or cash available to an individual, company, or institution at a given moment.

Demand Deposits

Demand Deposits are bank account funds that can be withdrawn at any time without any advance notice to the institution, such as checking accounts.

Forex

The market in which currencies are traded. It is the largest and most liquid financial market in the world.

Ordering and Carrying Inventory

Refers to the costs associated with ordering and holding inventory, including storage, management, and insurance.