According to a Report in USAToday (February 1,2012),more and More

question 62

Multiple Choice

According to a report in USAToday (February 1,2012) ,more and more parents are helping their young adult children get homes.Suppose eight persons in a random sample of 40 young adults who recently purchased a home in Kentucky received help from their parents.You have been asked to construct a 95% confidence interval for the population proportion of all young adults in Kentucky who received help from their parents.If a 99% confidence interval is constructed instead of a 95% confidence interval for the population proportion,then ________________________________________________________________.

• A) the resulting margin of error will increase and the risk of reporting an incorrect interval will increase
• B) the resulting margin of error will decrease and the risk of reporting an incorrect interval will increase
• C) the resulting margin of error will increase and the risk of reporting an incorrect interval will decrease
• D) the resulting margin of error will decrease and the risk of reporting an incorrect interval will decrease

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Definitions:

Fixed Costs

These are consistent expenses incurred by a business, regardless of production levels or sales volumes, such as rent or salaries.

Profit-Volume Chart

A chart plotting only the difference between total sales and total costs for various levels of units sold.

Break-Even Point

The point at which total costs and total revenues are equal, meaning a business neither makes a profit nor suffers a loss.

Unit Selling Price

The selling rate per unit of a product to consumers.