If We Knew the Population Mean and Variance, We Would

question 47

Multiple Choice

If we knew the population mean and variance, we would expect

• A) the sample mean would closely approximate the population mean.
• B) the sample mean would differ from the population mean by no less than 1.96 standard deviations only 5% of the time.
• C) the sample mean would differ from the population mean by no more than 1.64 standard deviations only 5% of the time.
• D) the sample mean would differ from the population mean by more than 1.96 standard errors only 5% of the time.

---

Definitions:

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, meaning each combination offers the same level of utility or satisfaction.

Highest Possible Price

The maximum price that a product or service can achieve in a market under current conditions.

Lowest Possible Price

the minimum price at which a good or service is offered, considering all factors including cost, demand, and competition.

Income Elasticity

A measure of how much the demand for a good or service changes in response to a change in income.