A Statistics Professor Wishes to Estimate the Average Mark on a Term

question 26

Multiple Choice

A statistics professor wishes to estimate the average mark on a term test for a course that has
Multiple sections and many students. A survey of some of the students registered for the course
Reveals the following results:
The student from the course wonders whether the population mean could have been 60 or 80.

• A) Since 80 is within the 95% confidence interval, the population mean is likely to be 80.
• B) Since 80 is not within the 95% confidence interval, the population mean is not likely to be 80.
• C) Since 60 is within the 95% confidence interval, the population mean is likely to be 60.
• D) Since neither 60 nor 80 is within the 95% confidence interval, the population mean is not likely to be 60 or 80.

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Definitions:

Marginal Propensity

The ratio of change in an economic variable (e.g., consumption, saving) to a change in another economic variable (e.g., income).

Disposable Income

Post-tax income that households can allocate towards savings and expenses.

Consumption Spending

The total amount of money that households spend on goods and services within a certain period.

Disposable Income

Income available to households for saving and expenditure post-income tax deductions.