As a Rule of Thumb, If the Sample Size N

question 18

True/False

As a rule of thumb, if the sample size n is large relative to the population size N in particular, if n / N 0.05 then the resulting experiment will not be binomial.

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Definitions:

Price Inelastic

Describes a situation where the demand for a product does not significantly change with a change in its price.

Gasoline Demand

The total quantity of gasoline that consumers are willing and able to purchase at various prices, within a given time period.

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity of the good supplied.

Elastic Supply

A situation where the quantity supplied of a good or service changes significantly in response to changes in price.