You Want to Build a 90% Confidence Interval Estimate of a Population

question 98

Multiple Choice

You want to build a 90% confidence interval estimate of a population mean.You take a sample of size 100, and find a sample mean of 1300.If the population standard deviation is 25, calculate the margin of error for your interval.

• A)5.232
• B)3.878
• C)4.125
• D)4.363
• E)4.991

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Definitions:

Loss Aversion

A principle in behavioral economics stating that individuals tend to prefer avoiding losses to acquiring equivalent gains.

Price Increase

A rise in the cost of goods or services over time, often measured as a percentage.

Quality Reduction

A decrease in the standard or grade of products or services, often as a cost-saving measure by producers.

Prospect Theory

A behavioral economic theory that describes how people choose between probabilistic alternatives that involve risk, where the probability of outcomes is known.