In a Controlled Laboratory Environment, a Random Sample of 10

question 92

Multiple Choice

In a controlled laboratory environment, a random sample of 10 adults and a random sample of 10 children were tested by a psychologist to determine the room temperature that each person finds
Most comfortable. The data are summarized below: $$\begin{array} { l c c } \hline & \text { Sample Mean } & \text { Sample Variance } \\\hline \text { Adults (1) } & 77.5 ^ { \circ } \mathrm { F } & 4.5 \\\text { Children (2) } & 74.5 ^ { \circ } \mathrm { F } & 2.5 \\\hline\end{array}$$ Suppose that the psychologist decides to construct a 99% confidence interval for the difference in
Mean comfortable room temperatures instead of proceeding with a test of hypothesis. The 99%
Confidence interval turns out to be (-2.9, 3.1) . Select the correct statement.

• A)It can be concluded at the 99% confidence level that the true mean comfortable room temperature for children exceeds that for adults.
• B)It can be concluded at the 99% confidence level that the true mean comfortable room temperature is between -2.9 and 3.1.
• C)It cannot be concluded at the 99% confidence level that there is actually a difference between the true mean comfortable room temperatures for the two groups.
• D)It can be concluded at the 99% confidence level that the true mean room temperature for adults exceeds that for children.

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Definitions:

45-Degree Line

In economics, a graphical representation used in Keynesian cross diagrams, where the line represents points where aggregate expenditure equals national income.

APC

The average propensity to consume, which is the ratio of consumption spending to disposable income.

Dissaving

Occurs when individuals withdraw funds from their savings, often due to expenditures exceeding income during a specific period.

Autonomous Consumption

The level of consumption that occurs when income is zero; it is the base level of spending that must occur even if an individual has no income.