Suppose Taxi Fare from Logan Airport to Downtown Boston Is

question 94

Multiple Choice

Suppose taxi fare from Logan Airport to downtown Boston is known to be normally distributed with a standard deviation of $2.50.The last seven times John has taken a taxi from Logan to downtown Boston,the fares have been $22.10,$23.25,$21.35,$24.50,$21.90,$20.75,and $22.65.What is a 95% confidence interval for the population mean taxi fare?

• A) [$17.4571,$27.2571]
• B) [$20.5051,$24.2091]
• C) [$20.8027,$23.9115]
• D) [$21.6571,$23.0571]

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Definitions:

Full Employment

An economic situation where all available labor resources are being used efficiently and there is no cyclical unemployment, implying a low, stable rate of unemployment.

Aggregate Supply

The aggregate output of goods and services generated inside an economy, measured at a specific price level over a designated time frame.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, serving as a key indicator of economic health.

Agency

In economics and finance, refers to a relationship where one party, the agent, makes decisions or performs a service on behalf of another, the principal.