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

question 5

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.What is the margin of error for a 95% confidence interval for the population proportion?

• A) 1.645(0.0040)
• B) 1.645(0.0632)
• C) 1.96(0.0040)
• D) 1.96(0.0632)

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Definitions:

Demand for Loanable Funds

The desire to borrow money, driven by businesses and individuals who seek financing for investment, consumption, or other purposes, typically influenced by interest rates.

Unanticipated Inflation

Inflation that occurs when the actual rate of inflation exceeds the expected rate, often leading to distortions in economic decision-making and allocations.

Borrowers

are individuals, companies, or entities that take out loans from lenders with the obligation of repaying the borrowed amount plus interest or other charges.

Lenders

Individuals, institutions, or entities that provide financial resources to borrowers under agreed terms for repayment with interest.