The Manager of Lawn and Garden Services Would Like to Estimate

question 115

Multiple Choice

The manager of Lawn and Garden Services would like to estimate the proportion of her employees' time spent performing various gardening and lawn care activities. She has made 400 random observations of a typical worker, with the following results: $$\begin{array} { l c } \text { Activity } & \text { Time Observed } \\\hline \text { Mowing } & 200 \\\text { Trimming } & 80 \\\text { Raking } & 40 \\\text { Miscellaneous } & 80\end{array}$$ What is the probability that the true proportion of time spent mowing is exactly equal to the sample proportion?

• A) 0
• B) .1
• C) .2
• D) .5
• E) 1

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Definitions:

Private Cost

Private cost is the cost incurred by an individual or company in producing goods or services, excluding externalities.

External Benefit

A positive effect of a transaction or activity on a third party who did not choose to incur that benefit.

Externalities

Financial implications or effects that influence bystander third parties and may be either beneficial or harmful.

Incentives

Factors that motivate or encourage individuals to perform actions or make decisions.