You and a Friend Want to Estimate the Proportion of Undergraduates

question 38

Multiple Choice

You and a friend want to estimate the proportion of undergraduates at a college who favor eliminating evening exams. Your friend will choose a simple random sample of 250 students. If you choose a simple random sample of 1000 students, your sample proportion

• A) will have the same mean and the same standard deviation.
• B) will have smaller bias and the standard deviation will be 1/4 as large.
• C) will have smaller bias and the standard deviation will be 1/2 as large.
• D) will have the same mean and the standard deviation will be 1/4 as large.
• E) will have the same mean and the standard deviation will be 1/2 as large.

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Definitions:

P > MC

Indicates a situation where the price (P) of a good is greater than the marginal cost (MC) of producing it, suggesting the potential for economic profits.

Short Run

A time period in economics during which at least one factor of production is fixed, limiting the ability of the business to adjust to market changes fully.

Monopolistically Competitive Firm

A type of firm in a market structure where many companies sell products that are similar but not identical, and each has some control over its price.

Monopolistic Competition

A market structure characterized by the presence of several firms that sell similar, but slightly differentiated, products and services where each has some control over its prices.