Suppose That You Want to Put on a Fireworks Display

question 309

Multiple Choice

Suppose that you want to put on a fireworks display in your hometown of 1,000 people this July.The cost of the display is $6,000,and each person values the display at $5.After a month,you have only sold 50 tickets at $5 each.The result is that

• A) the local government should put on the display, but you should not.
• B) you should still put on the display, but the local government should not.
• C) neither you nor the local government should put on the display.
• D) either you or the local government should put on the display.

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Definitions:

Sample Proportion

The fraction or percentage of the sample that represents a particular trait or characteristic.

Confidence Interval

An interval of values, obtained from the analysis of sample data, which is probable to include the value of an unspecified population parameter, within a given level of certainty.

Population Proportion

The ratio of members in a population that have a particular characteristic to the total number of members in the population.

Confidence Level

A measure of how likely it is that a statistical estimate is correct, often expressed as a percentage indicating how confident one can be in the result.