The Owner of a Small Manufacturing Firm Is Concerned About

question 144

Essay

The owner of a small manufacturing firm is concerned about the high cost of health insurance for his employees.A random sample was taken from the total of 120 employees to determine whether they would support the owner's proposal for participation in a preferred-provider plan.Of the 50 employees sampled,28 strongly supported the plan.Construct a 95% confidence for the true proportion.
____________________ to ____________________
Do you feel that the proposed plan would get majority support from the employees if put to a vote? Explain your answer.

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Definitions:

Indifference Curves

Graphical representations in economics showing combinations of goods that give the consumer equal satisfaction and utility.

Utility Function

A utility function is a mathematical representation of a consumer’s preferences, ranking different bundles of goods according to levels of satisfaction.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, meaning they would derive the same level of satisfaction from any combination.

Bliss Point

The optimal quantity of consumption where any further increase or decrease would lead to a lower level of satisfaction for the consumer.