A Survey of an Urban University (Population of 25,450) Showed

question 54

Multiple Choice

A survey of an urban university (population of 25,450) showed that 870 of 1,100 students sampled supported a fee increase to fund improvements to the student recreation center. If university officials say that at least 70% of the voting student population support the fee increase, what conclusion can be drawn based on a 95% level of confidence?

• A) 70% is not in the interval, need to take another sample.
• B) 70% is not in the interval, so assume it will not be supported.
• C) 70% is below the interval, so assume it will be supported.
• D) Since this was not based on population, cannot make conclusion.

---

Definitions:

Utility Maximization

The economic principle that individuals or firms attempt to allocate their resources in a manner that maximizes their satisfaction or profit.

Marginal Utility

The supplementary enjoyment a consumer experiences when they consume an extra unit of a good or service.

Budget Constraints

Budget constraints represent the limitations on the spending choices of consumers based on their income and the prices of goods and services.

Total Utility

The overall satisfaction a consumer receives from consuming a particular quantity of goods or services.