Construct and Interpret Confidence Intervals for the Difference Between Two $5 \%$

question 10

Multiple Choice

Construct and Interpret Confidence Intervals for the Difference between Two Population Proportions
-To construct a confidence interval for the difference of two population proportions the samples must be independently obtained random samples, both must consist of less than $5 \%$ of the population, and

• A) both np1 \(( 1 - \hat { p } 1 ) \geq 10\) and \(\hat { n p } 2 ( 1 - \hat { p } 2 ) \geq 10\) must be true.
• B) only one of \(n \hat { p } 1 ( 1 - \hat { p } 1 ) \geq 10\) or \(n \hat { p } 2 ( 1 - \hat { p } 2 ) \geq 10\) must be true.
• C) \(\operatorname { np } 1 ( 1 - \hat { \mathrm { p } } 1 ) + \hat { n p } 2 ( 1 - \hat { \mathrm { p } } 2 ) \geq 20\).
• D) \(n \mathrm { p } 1 \left( 1 - \hat { p } _ { 1 } \right) \mathrm { np } 2 \left( 1 - \hat { p } _ { 2 } \right) \geq 100\).

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Definitions:

Collusion

A situation in which firms act together and in agreement (collude) to fix prices, divide a market, or otherwise restrict competition.

Entry Barriers

Obstacles that make it difficult for new competitors to enter an industry, including high initial investment, stringent regulations, and strong brand loyalty.

Mutual Interdependence

A situation in which the outcome or payoff for each participant depends on the choices or actions of all involved parties.

Economic Profits

Profits exceeding the opportunity costs of inputs, indicating that resources are likely yielding the highest value use.