Roadblocks from Time to Time Police Set Up Roadblocks to Check

question 90

Essay

Roadblocks From time to time police set up roadblocks to check cars to see if the safety inspection is up to date. At one such roadblock they issued tickets for expired inspection stickers to 22 of 628 cars they stopped.
a. Based on the results at this roadblock, construct and interpret a 95% confidence interval for the proportion of autos in that region whose safety inspections have expired.
b. Explain the meaning of "95% confidence" in part a.

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Definitions:

Marginal Cost

The increase in cost resulting from the production of one additional unit of a product.

Monopolistic Competition

A market structure characterized by many firms offering products that are similar but not identical, allowing for competition based on quality, price, and marketing.

Ease Of Entry

Refers to the absence of barriers for new competitors to enter an industry or market.

Profit Maximizing

The process by which a firm determines the price and output level that returns the greatest profit.