The equilibrium price of coffee mugs rose sharply last month, but the equilibrium quantity was the same as ever. Three people tried to explain the situation. Which explanations could be right? Explain your logic. Billy: Demand increased, but supply was totally inelastic. Marian: Supply increased, but so did demand. Valerie: Supply decreased, but demand was totally inelastic.

SCM 200 week 7 notes E(statistic)= parameter E(x bar)= mu Point and interval estimates: • a point estimate is a single # that is used to estimate an unknown population parameter an interval estimate (or confidence interval) is a range of #’s thought to contain • an unknown parameter value T/F All standard deviations are standard errors, but not all standard errors are standard deviations.........F T/F A sampling distribution is a distribution of all possible values of a statistic for a give sample size.....T T/F Given a population standard deviation, as a sample size increases, standard error also increases....F