Answer:
eY is positive +0.1 therefore bagels are a normal good.
Step-by-step explanation:
Given data:
when, 10% rise in cheese price, 3% fall in bagels quantity observed
when, 10% rise in income, 1% fall in bagels quantity observed
from formula for cross price elasticity of demand, determine
As, eAB is negative, bagels $ cream cheese are complements.
By formula for income elasticity of demand,
we find that
Since eYis positive, bagels are a normal good.
Answer: b. Yes
Step-by-step explanation: Confidence Interval for a population proportion is calculated as:
p ±
where
p is the sample proportion
n is sample size
z is z-score, in this case, as it is 95%, z-score=1.96
Calculating confidence interval:
p = 0.3248
0.3248 ±
0.3248 ±
0.3248 ± 0.0425
Interval: 0.2823 < μ < 0.3673
The interval means we are 95% sure the true mean is between 0.2823 and 0.3673. As the campaign claims a proportion of no more than 0.32 of the voters wants to see Mayor Waffleskate defeated and the number is in the confidence interval, the claim is supported.