You Have Constructed a 95% Confidence Interval to Estimate the Mean

question 105

Multiple Choice

You have constructed a 95% confidence interval to estimate the mean number of people downloading music files from the internet using a sample of 150 people.Which of the following statements is/are true?
I.A 95% Confidence interval will be wider than a 99% confidence interval.
II.Sampling a smaller number of people will increase the margin of error.
III.Changing the sample size will change the value of t*.

• A)I,II,III
• B)I,II
• C)I
• D)II
• E)II,III

---

Definitions:

Monopolistically Competitive

Refers to a market structure where many companies sell similar but not identical products, allowing them to have some control over their prices.

Economic Profits

Profits that exceed the opportunity costs of a firm, calculated as total revenues minus both explicit and implicit costs.

Long Run

A period during which all factors of production and costs are variable, and firms can enter or exit the industry.

Total Revenue

The gross revenue from selling products or services before deducting any costs.