A Sample of 250 People Resulted in a Confidence Interval

question 2

Multiple Choice

A sample of 250 people resulted in a confidence interval estimate of between 0.14 and 0.20 for the proportion of people who believe that the federal government's proposed tax increase is justified. Based on this information, what was the confidence level used in this estimation?

• A) approximately 79%
• B) 95%
• C) approximately 36.9%
• D) approximately 1.26%
• E) It cannot be determined with the information given.

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Definitions:

E-books

E-books are digital versions of books, made available on electronic devices, allowing for easy access and portability.

Substitutes

Products or services that can be used in place of each other, where an increase in the price of one leads to an increase in the demand for the other.

Optimal Consumption

The mix of consumer purchases that maximizes the utility or satisfaction obtained from a given expenditure level.

Indifference Curve

A graph representing combinations of goods or services among which a consumer is indifferent, meaning they have no preference for one combination over another.