A Researcher Was Conducting an Investigation to Determine If Level

question 16

Multiple Choice

A researcher was conducting an investigation to determine if level of education affected a person's consumption of alcoholic beverages.The researcher was specifically interested in determining whether those with a grade school,high school,or college education were more likely to drink beer,wine,or hard liquor.To investigate the question the researcher planned to cross-classify these three education levels of respondents against their preferences for each of these beverages.She estimated that 20 percent of the population of interest had a college education,70 percent a high school education,and 10 percent only a grade school education,and further that 40 percent of the population preferred beer,40 percent wine,and 20 percent hard liquor.She desired a minimum of 20 observations per cell on which to base percentages.How large a sample should she select?

• A)200
• B)250
• C)400
• D)500
• E)100

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Definitions:

MPC

Marginal Propensity to Consume, indicating the increase in personal consumer spending (consumption) that occurs with an increase in disposable income.

Internally Held

Pertains to public debt that is owed to lenders within a country rather than external lenders.

Public Debt

The total amount of money that a country's government has borrowed by various means, including foreign governments and international organizations.

Productive Capacity

The maximum output that an economy can achieve when using its resources fully and efficiently.