The National Center for Education Would Like to Estimate the Proportion

question 130

Multiple Choice

The National Center for Education would like to estimate the proportion of students who defaulted on their student loans for the state of Arizona. The total sample size needed to construct a 95% confidence interval for the proportion of student loans in default with a margin of error equal to 4% is ________.

• A) 336
• B) 455
• C) 416
• D) 601

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing to pay and the actual amount they pay for a good or service.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price in a market.

Car Market

The industry related to the manufacturing, selling, and buying of automobiles.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; every good or service is distributed to yield the highest aggregate utility.