A 99% Confidence Interval Estimate Can Be Interpreted to Mean

question 114

Multiple Choice

A 99% confidence interval estimate can be interpreted to mean that

• A)if all possible samples of size n are taken and confidence interval estimates are developed,99% of them would include the true population mean somewhere within their interval.
• B)we have 99% confidence that we have selected a sample whose interval does include the population mean.
• C)Both above.
• D)None of the above.

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Definitions:

Law of Demand

The economic principle stating that as the price of a good decreases, consumer demand for that good will increase, and vice versa, holding everything else constant.

Quantity Demanded

The amount of a good consumers are willing and able to buy per period at a particular price, as reflected by a point on a demand curve.

Real Income

Income measured in terms of the goods and services it can buy; real income changes when the price changes.

Law of Demand

A principle stating that, all else being equal, as the price of a good or service decreases, consumer demand for it will increase, and vice versa.