A Researcher Wishes to Estimate the Number of Households with Two

question 71

Multiple Choice

A researcher wishes to estimate the number of households with two computers. How large a sample is neededin order to be 98% confident that the sample proportion will not differ from the true proportion by more than2%? A previous study indicates that the proportion of households with two computers is 20%.

• A) 2172
• B) 1537
• C) 2715
• D) 3

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Definitions:

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the real quantity of goods and services produced.

Money Supply

Refers to the total amount of money—cash, coins, and balances in bank accounts—available in an economy at a specific time.

Classical Macroeconomic Theory

An economic theory that posits that markets function efficiently and that full employment is achieved when economies operate at a state of equilibrium without government intervention.

Nominal Variables

Variables that are measured in terms of money and have not been adjusted for inflation, as opposed to real variables which are inflation-adjusted.