We Intend to Estimate the Average Driving Time of a Group

question 19

Multiple Choice

We intend to estimate the average driving time of a group of commuters. From a previous study, we believe that the average time is 42 minutes with a standard deviation of 7 minutes. We want
Our 90 percent confidence interval to have a margin of error of no more than plus or minus 4
Minutes. What is the smallest sample size that we should consider?

• A)9
• B)34
• C)3
• D)2

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Definitions:

Collusive Behavior

An agreement among firms in a market to set prices or output levels to avoid competition, often considered illegal.

Marginal Cost

The money spent on producing another unit of a product or service.

Cartel

A coalition of suppliers or manufacturers aimed at preserving elevated price levels and reducing competitive pressures.

Marginal Cost

The upsurge in total expenditure associated with the fabrication of one further unit of a good or service.