Parking at a Large University Can Be Extremely Difficult at Times

question 31

Multiple Choice

Parking at a large university can be extremely difficult at times. One particular university is trying to determine the location of a new parking garage. As part of their research, officials are interested in estimating the average parking time of students from within the various colleges on campus. A survey of 338 College of Business (COBA) students yields the following descriptive information regarding the length of time (in minutes) it took them to find a parking spot. Note that the "Lo 95%" and "Up 95%" refer to the endpoints of the desired confidence interval. $$\begin{array} { l l c c c c r } \text { Variable } & \mathrm { N } & \text { Lo 95\% CI } & \text { Mean } & { \text { Up 95\% CI } } & \text { SD } \\\text { Parking Time } & 338 & 9.1944 & 10.466 & 11.738 & 11.885\end{array}$$
Explain what the phrase "95% confident" means when working with a 95% confidence interval.

• A) In repeated sampling, 95% of the sample means will fall within the interval created.
• B) 95% of the observations in the population will fall within the endpoints of the interval.
• C) In repeated sampling, 95% of the population means will fall within the interval created.
• D) In repeated sampling, 95% of the intervals created will contain the population mean.

Recognize the impact of price changes on consumer and producer surplus.

Understand the conditions for market equilibrium and how it affects surplus.

Identify the factors leading to changes in the quantity demanded and supplied in the market.

Analyze the role of economic signals in correcting market imbalances.

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