Exhibit 9-5 a Random Sample of 100 People Was Taken. Eighty-Five of Eighty-Five

question 78

Multiple Choice

Exhibit 9-5
A random sample of 100 people was taken. Eighty-five of the people in the sample favored Candidate A. We are interested in determining whether or not the proportion of the population in favor of Candidate A is significantly more than 80%.
-Refer to Exhibit 9-5. The test statistic is

• A)0.80
• B)0.05
• C)1.25
• D)2.00

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Definitions:

Adaptive Expectations

A theory in economics that expectations of future events are constructed based on past events and that agents adjust slower to new information.

Monetarists

Economists who emphasize the role of governments in controlling the amount of money in circulation as a primary method for managing the economy and combating inflation.

Money Supply

The comprehensive sum of money resources in an economy, encompassing cash, coins, and deposits in checking and savings accounts, at a specific moment.

Real Output

A measurement of the economic production adjusted for price changes, often used to evaluate the size and health of an economy.