A Random Sample of 500 Reports an Average Yearly Income $\pm$

question 49

Multiple Choice

A random sample of 500 reports an average yearly income of $42,000 with a standard deviation of $1000.An estimate of the parameter at the 95% level is about $175 wide.In this research situation,

• A)we can be 95% confident that the population mean is 42,000\(\pm\) 175.
• B)the sample size is much too small to justify the use of estimation procedures.
• C)the alpha level is 1000.
• D)the sample mean is $175.

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Definitions:

Basic Economic Theory

Fundamental principles of economics that explore how resources are allocated, goods and services are distributed, and wealth is created and transferred.

Reference Point

The point from which an individual makes a consumption decision.

Past Consumption

refers to the total amount of goods and services consumed in previous time periods, influencing current and future economic decisions.

Market Experience

The accumulation of knowledge, customer feedback, and operational insights that a company gains through its activities in a particular market.