Statisticians Like Precision in Their Interval Estimates

question 67

Multiple Choice

Statisticians like precision in their interval estimates. A low margin of error is needed to achieve this. Which of the following supports this when selecting sample sizes?

• A) A larger sample size reduces the margin of error.
• B) A smaller sample size reduces the margin of error.
• C) A larger sample size increases the margin of error.
• D) A sample size has no impact on the margin of error.

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Definitions:

Excise Tax

Excise tax is a type of tax charged on specific goods, services, and activities, such as alcohol, tobacco, and fuel, usually to discourage their use or generate revenue.

Consumers' Burden

The part of the incidence of a tax borne by consumers, often reflected in higher prices or reduced consumption of taxed goods.

Efficiency Loss

The reduction in economic productivity that happens when the balance for a product or service is either not attained or unattainable.

Excise Tax

A tax imposed on the sale of specific goods or services, such as tobacco, alcohol, and gasoline, often with the aim of reducing their consumption.