Which of the Following Is an Advantage of a Confidence

question 119

Multiple Choice

Which of the following is an advantage of a confidence interval estimate over a point estimate for a population parameter?

• A) Interval estimates are more precise than point estimates.
• B) Interval estimates are less accurate than point estimates.
• C) Interval estimates are both more accurate and more precise than point estimates.
• D) Interval estimates take into account the fact that the statistic being used to estimate the population parameter is a random variable.

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Definitions:

Aggregate Demand

Collective appetite for goods and services in an economic system, pegged at a particular comprehensive price level for a fixed time frame.

Short-Run Aggregate Supply

The total output of goods and services that firms in an economy are willing to produce at different price levels in the short term, holding some input prices fixed.

Classical Theory

An economic theory that emphasizes the ideas that free markets can regulate themselves through the laws of supply and demand, positing minimal government intervention.

Short Run

A period in economics where at least one factor of production is fixed and cannot be varied to influence output.