Solve the Problem. -A Researcher Is Interested in Estimating the Proportion of Voters

question 141

Multiple Choice

Solve the problem.
-A researcher is interested in estimating the proportion of voters who favor a tax on e-commerce. Based on a sample of 250 people, she obtains the following 99% confidence interval for the population proportion,
P: 0.113 < p < 0.171. Which of the statements below is a valid interpretation of this confidence interval?

• A) If 100 different samples of size 250 were selected and, based on each sample, a confidence interval were constructed, exactly 99 of these confidence intervals would contain the true value of p.
• B) If many different samples of size 250 were selected and, based on each sample, a confidence interval were constructed, in the long run 99% of the confidence intervals would contain the true value of p.
• C) If many different samples of size 250 were selected and, based on each sample, a confidence interval were constructed, 99% of the time the true value of p would lie between 0.113 and 0.171.
• D) There is a 99% chance that the true value of p lies between 0.113 and 0.171.

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Definitions:

Value Judgments

Evaluations based on individual or societal beliefs about what is good, desirable, or worthwhile, often influenced by personal ethics or morals.

Law of Averages

A layman's term for the statistical principle that over time, outcomes will tend towards the expected average; not a formal economic law. NO.

Microeconomics

The branch of economics that studies individual units of the economy, such as households and firms, and their interactions in markets.

Macroeconomics

The branch of economics that studies the behavior and performance of an economy as a whole, focusing on aggregate outcomes such as economic growth, inflation, and unemployment.