For Questions Use the Following Narrative

question 43

Multiple Choice

For Questions use the following narrative
Narrative: Exit poll
Suppose a recent election exit pollster reports that "Forty-eight percent of the voters polled said they voted for Candidate A.The margin of error for this survey is plus or minus 2.5 percentage points." Assume the exit poll was designed and conducted correctly.
-{Exit poll narrative} About how many people were sampled?

• A)40
• B)1,600
• C)16,000
• D)Not enough information to tell.

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Definitions:

Adverse Selection

A situation where buyers and sellers have different information, leading to the market being dominated by inferior products because higher quality products are squeezed out.

Free Markets

Economic systems in which the prices for goods and services are determined by the open market and consumers, without government intervention.

Moral-Hazard Problem

A situation in which one party engages in risky behavior knowing that it is protected against the risk because another party will incur any resulting costs.

Monitoring

The process of systematically observing, checking, and recording activities or data to ensure proper compliance or performance.