Is It True That the Point Estimate of a Population

question 2

Multiple Choice

Is it true that the point estimate of a population mean must lie within the range of values defined by the corresponding confidence-interval estimate, regardless of the level of confidence achieved?
Explain.

• A)No. The confidence interval only defines a range of values that is likely to contain the point estimate with some prescribed level of confidence. This range of values is not guaranteed to Contain the point estimate.
• B)Yes. By definition, the prescribed confidence interval contains the value of the point estimate.

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Definitions:

Inefficently

Operating in a manner that does not maximize productivity or use resources in the best possible manner.

Taxes

Imperative monetary contributions or distinct types of taxation demanded from a taxpayer by a public authority to cover the costs of governmental functions and diverse public financial needs.

Incentives

Motivators or stimuli that encourage or promote certain behaviors or actions by offering rewards or benefits.

Market Size

The total number of potential buyers and sellers of a particular product or service within a given market.