Exhibit 21-2 A Simple Random Sample of 43 Elements Has Been Selected

question 17

Multiple Choice

Exhibit 21-2
A simple random sample of 43 elements has been selected from a population of size 800. The sample mean is 500, and the sample standard deviation is 60.
-Refer to Exhibit 21-2. An approximate 95% confidence interval for the population mean is

• A)482.2 to 517.8
• B)440.0 to 560.0
• C)500.0 to 560.0
• D)440.0 to 500.0

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Definitions:

Profit-Maximizing Output

The level of production at which a company can achieve the highest possible profit based on its cost structure and the market price of its products.

Economic Profit

Profit calculated by subtracting both explicit (direct) and implicit (indirect or opportunity) costs from total revenues.

Economic Profit

The profit a company makes after deducting both explicit (direct payments) and implicit (opportunity) costs.

Normal Profit

Normal profit is the minimum level of profit needed for a company to remain competitive in the market, equivalent to the opportunity cost of capital.