A Random Sample of 25 Students Selected from the Student

question 84

Multiple Choice

A random sample of 25 students selected from the student body of a large university had an average age of 25 years and a standard deviation of 2 years. We want to determine if the average age of all the students at the university is significantly more than 24. Assume the distribution of the population of ages is normal. Using α = .05, it can be concluded that the population mean age is

• A) not significantly different from 24.
• B) significantly different from 24.
• C) significantly less than 24.
• D) significantly more than 24.

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Definitions:

Natural Rate

The rate of a quantity, such as unemployment or interest, that prevails when the economy is in a long-term equilibrium.

Classical Dichotomy

The theoretical separation of nominal and real variables in classical economics, suggesting that changes in the money supply only affect nominal variables.

Inflation Rate

An upward movement in the overall price level of goods and services in an economy over time.

Aggregate Demand

Aggregate request for products and services in an economy, measured at a particular general price level throughout a defined time interval.