In July 2013, the Unemployment Rate in California Was 8

question 123

Multiple Choice

In July 2013, the unemployment rate in California was 8.5%, that of Oregon was 7.9%, and that of Washington State was 6.8%.(Keep in mind that California is by far the most populous of the three states) .If a simple, rather than weighted, average were used to estimate the overall unemployment rate across the three West coast states, the resulting value would be:

• A)an underestimate of the true unemployment rate across the three states.
• B)an accurately estimate of the true unemployment rate across the three states.
• C)an overestimate of the true unemployment rate across the three states.
• D)the direction of the bias of the estimate cannot be determined.
• E)none of the above

---

Definitions:

Accurate

The quality of being correct or precise, without errors or mistakes.

Cent

A monetary unit in various countries, equal to one-hundredth of a base currency unit.

Decimal Equivalent

The representation of fractions as decimals by dividing the numerator by the denominator.

Percent Equivalent

A way to express a number as a percentage of 100.