Suppose a Study of 196 Randomly Sampled Privately Insured Adults

question 146

Multiple Choice

Suppose a study of 196 randomly sampled privately insured adults with incomes over 200% of the current poverty level is to be used to measure out-of-pocket medical expenses for prescription drugs for this income class. The sample data are in the file Drug Expenses. Based on the sample data, construct a 95% confidence interval estimate for the mean annual out-of-pocket expenditures on prescription drugs for this income class. Interpret this interval.

• A) (162.08, 172.96)
• B) (163.50, 171.54)
• C) (164.19, 170.85)
• D) (161.97, 173.07)

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Definitions:

Reserve Requirement

The mandatory percentage of deposits that banks must hold in reserve, either in their vaults or at the central bank, not available for lending.

Government Bond

A debt security issued by a government to support government spending and obligations, typically offering a fixed rate of return.

Money Supply

The comprehensive amount of money assets found in an economy at a noted time.

Checking Accounts

Bank accounts that allow for both deposits and withdrawals, enabling easy access for daily transactions.