A Random Sample of 25,000 ACT Test Takers Had an Average

question 18

Multiple Choice

A random sample of 25,000 ACT test takers had an average score of 21 with a standard deviation of 5. With a .95 probability, determine the margin of error.

• A) .0277
• B) .0568
• C) .2603
• D) .0620

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Definitions:

Loanable Funds

The resources available for borrowing in the financial markets, influenced by savings, borrowing, and the government’s fiscal policies.

Demand For Loanable Funds

The desire to borrow money, driven by (among other factors) investments and the consumer desire for purchasing goods or services on credit.

Open-Economy Macroeconomic Model

A theoretical framework that analyzes the economy of a country in the context of its interactions with other countries, including trade, investment, and financial flows.

Supply Of Loanable Funds

The total amount of funds available for borrowing in the financial markets, determined by savings and the monetary policy.