A Congressman Wants to Measure the Level of Support in His

question 10

Essay

A congressman wants to measure the level of support in his district for campaign finance reform and wants to determine whether there is a gender gap with respect to this issue. One researcher suggests that they find separate confidence intervals for the percent of men and the percent of women who favor reform and then see if the intervals overlap. Another researcher suggests that they find a confidence interval for the difference in the proportions of men and women who favor reform. Which is the correct approach? Why?

---

Definitions:

Profit-Maximizing

A strategy or point at which a business achieves its highest possible profit, with an optimal level of output and pricing.

Loss-Minimizing

A strategy or approach aimed at reducing the amount of losses incurred in business operations or investments.

ATC

Average Total Cost is the total cost divided by the number of goods produced, indicating the cost per unit of output.

MC

Marginal Cost; the cost added by producing one additional unit of a product or service, essentially the cost of producing one more of something.