A Sample of 250 People Resulted in a Confidence Interval

question 12

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 tax increase proposed by the federal government 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) approximately 90%

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Definitions:

Required Reserve Ratio

The fraction of deposits that banks are required by law to keep on hand or with the central bank, rather than lend out.

Money-Creation Process

The mechanisms through which new money is produced and introduced into the economy, primarily conducted by central banks and commercial banks.

Government Securities

Financial instruments issued by the government to finance its expenditures, including bonds, bills, and notes.

Checkable Deposits

are bank account balances that can be readily accessed and used for payments or withdrawals via checks, debit cards, or electronic transfers.