Let P₁ Represent the Population Proportion of U

question 69

Short Answer

Let p₁ represent the population proportion of U.S. senatorial and congressional (House of Representatives) Democrats who are in favor of a new modest tax on junk food. Let p₂ represent the population proportion of U.S. senatorial and congressional Republicans who are in favor of a new modest tax on junk food. Out of the 265 Democratic senators and members of Congress, 106 of them are in favor of a junk food tax. Out of the 285 Republican senators and members of Congress, only 57 are in favor of a junk food tax. Find a 95 percent confidence interval for the difference between proportions l and 2.

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Definitions:

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, leading to specialized production and trade.

Absolute Advantage

A situation in which a country, individual, or company can produce a good at a lower cost per unit than competitors.

Opportunity Cost

The price paid for not choosing the second-best option during decision-making.

Higher Opportunity Cost

The increased potential loss of choosing one option over another, indicating a sacrifice of higher value alternatives.