A Researcher Is Interested in Estimating the Proportion of Voters

question 22

Multiple Choice

A researcher is interested in estimating the proportion of voters who favor a tax on e-commerce. Based on a sample of 250 people, she obtains the following 99% confidence interval for the Population proportion p:
0.113 < p < 0.171 Which of the statements below is a valid interpretation of this confidence interval?

• A)If 100 different samples of size 250 were selected and, based on each sample, a confidence interval were constructed, exactly 99 of these confidence intervals would contain the true
• Value of p.
• B)If many different samples of size 250 were selected and, based on each sample, a confidence interval were constructed, in the long run 99% of the confidence intervals would contain the
• True value of p.
• C)If many different samples of size 250 were selected and, based on each sample, a confidence interval were constructed, 99% of the time the true value of p would lie between 0.113 and
• 0.171
• D)There is a 99% chance that the true value of p lies between 0.113 and 0.171

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Definitions:

Initial Investment

Initial investment refers to the amount of money initially invested in a project, asset, or company, which can influence subsequent cash flows and profitability.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the fixed versus variable costs structure of a company.

Depreciation Expense

Strategically spreading out the cost of a concrete asset over the course of its serviceable life.

Operating Cash Flow

A measure of the cash generated by a company's normal business operations, indicating whether a company is able to generate sufficient positive cash flow to maintain and grow its operations.