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The National Center for Education Would Like to Estimate the Proportion

question 14

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The National Center for Education would like to estimate the proportion of students who defaulted on their student loans for the state of Arizona. A pilot sample of 50 students with loans from Arizona found that eight had defaulted on their loans. The total sample size needed to construct a 95% confidence interval for the proportion of student loans in default with a margin of error equal to 4% is _____ .


Definitions:

Consumer Surplus

The disparity between what consumers are prepared and can afford to spend on a product or service compared to the actual amount they end up paying.

Tariff

A tax imposed on imported goods to protect domestic industries or to generate revenue.

Tariff Revenue

Income that governments earn from imposing taxes on imported goods to protect domestic industries or generate income.

Economic Strategy

A plan of action designed to achieve specific financial or market objectives.

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