Solve the Problem. -A Researcher Wishes to Construct a 95% Confidence Interval for Confidence

question 93

Multiple Choice

Solve the problem.
-A researcher wishes to construct a 95% confidence interval for a population mean. She selects a simple random sample of size n = 20 from the population. The population is normally distributed and is unknown. When constructing the confidence interval, the researcher should use the t distribution; however, she incorrectly uses the normal distribution. Will the true confidence level of the resulting confidence interval be greater than 95%, smaller than 95%, or exactly 95%?

• A)Greater than 95%
• B)Exactly 95%
• C)Smaller than 95%

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Definitions:

Long-Run Average Cost

The per-unit cost of production in the long term, where all inputs are variable.

Total Output

The total value of goods and services produced by an economy over a specific period of time.

Total-Cost Curve

A graphical representation showing the total cost of producing varying quantities of output.

Economic Profit

The surplus gained from undertaking an activity after accounting for both explicit and implicit costs, differing from accounting profit.