Which of the Following Critical Values Is Appropriate for A 98

question 14

Multiple Choice

Which of the following critical values is appropriate for a $98 \%$ confidence level where $n = 7$ ; $\sigma = 27$ and the population appears to be normally distributed.

• A) \(z _ { \alpha / 2 } = 2.33\)
• B) \(z _ { \alpha / 2 } = 2.05\)
• C) \(t _ { \alpha / 2 } = 1.96\)
• D) \(t _ { \alpha / 2 } = 2.575\)

---

Definitions:

Equilibrium Quantity

The quantity of goods or services supplied that equals the quantity demanded at the market equilibrium price.

Positively Sloped

A line or curve on a graph that increases in value as it moves from left to right, indicating a direct relationship between two variables.

Negatively Sloped

A descriptor for a line on a graph that moves downwards from left to right, indicating an inverse relationship between the variables plotted.

Total Surplus

The total net gain to society from creating and consuming goods and services, encapsulated by the combination of consumer and producer surplus.