Which of the Following Statements Is Correct When Estimating the Difference

question 16

Short Answer

Which of the following statements is correct when estimating the difference between two population proportions p₁ − p₂? $\begin{array}{|l|l|}\hline A&\text { We must take two independent samples.}\\\hline B&\text {We count the number of successes in each sample. }\\\hline C&\text {The sampling distribution of the difference of sample proportions is approximately }\\&\text { normally distributed for large sample sizes.}\\\hline D&\text { All of these choices are correct.}\\\hline \end{array}$

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Definitions:

Natural-Monopoly Situation

A market condition in which a single firm can produce output at a lower cost than can multiple firms, leading to a monopoly justified by efficiencies of scale.

Implicit Costs

The opportunity costs that arise from using resources that a business already owns rather than earning revenue from those resources elsewhere.

Explicit Costs

Direct, out-of-pocket expenses incurred in conducting a business activity, such as wages, rent, and materials.

Economic Profits

Profits earned by a company after accounting for both explicit (direct) and implicit (opportunity) costs.