An Economist Is Interested in Studying the Incomes of Consumers

question 76

Multiple Choice

An economist is interested in studying the incomes of consumers in a particular country. The population standard deviation is known to be $1,000. A random sample of 50 individuals resulted in a
Mean income of $15,000. What is the upper end point in a 99% confidence interval for the average
Income?

• A) $15,052
• B) $15,141
• C) $15,330
• D) $15,364

Understand how to calculate Return on Investment (ROI) and interpret its value.

Understand the concept of residual income and how it is calculated.

Comprehend the importance of the minimum required rate of return in investment decisions.

Analyze and differentiate between the investment preferences of division managers versus corporate management in a decentralized organization.

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Definitions:

Cafeteria

Generally refers to a type of food service location within schools, hospitals, or workplaces where people choose from various food options.

Response Cost

A behavior modification technique where undesired behaviors are discouraged by removing a positive stimulus or reward.

Inappropriate Behavior

Conduct that is not suitable or proper in a specific setting, often violating social or professional norms.

Habit Reversal

A variation on positive practice overcorrection that involves having students practice a behavior that is incompatible with the inappropriate behavior.