To Use the Normal Approximation to Determine a Confidence Interval

question 6

True/False

To use the normal approximation to determine a confidence interval to estimate a population proportion,np and n(1-p)must both be greater than or equal to 5.

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Definitions:

Consumer Price Index

An index that measures the change over time in the price level of a basket of consumer goods and services.

Monetary Policy

Measures undertaken by a government's central bank to control the money supply and influence economic conditions.

Supply of Money

The sum of financial resources present within an economy at a certain point in time.

General Level of Prices

An average or overall measure of the prices of goods and services in an economy at a given time, often used to assess inflation.