Suppose That You Have Estimated the Difference Between Two Population

question 14

Essay

Suppose that you have estimated the difference between two population proportions,p₁?p₂ , using a confidence interval. What are the appropriate interpretations of thefollowing results?
a) Both endpoints of the confidence interval for are positive.
b) Both endpoints of the confidence interval for are negative.
c) Zero is included in the confidence interval.

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Definitions:

Normal Profit

The minimum amount of profit needed for a company to remain competitive in the market; it equals the total opportunity costs of a firm.

Economic Profits

The surplus or profit earned by a firm or individual after accounting for both explicit and implicit costs.

Purely Competitive Industry

An industry characterized by many small firms producing identical products where no single firm can influence the market price.

Consumer Demand

The desire and willingness of consumers to purchase goods and services at given prices.