Applying the Concepts NW 21. You Explain It! New Deal Policies In response to the Great
Depression, Franklin D. Roosevelt enacted many New Deal
policies. One such policy was the enactment of the National
Recovery Administration (NRA), which required business to agree
to wages and prices within their particular industry. The thought
was that this would encourage higher wages among the working
class, thereby spurring consumption. In a Gallup survey conducted
in 1933 of 2025 adult Americans, 55% thought that wages paid
to workers in industry were too low. The margin of error was 3
percentage points with 95% confidence. Which of the following
represents a reasonable interpretation of the survey results? For
those that are not reasonable, explain the flat.
(a) We are 95% confident 55% of adult Americans during the
Great Depression felt wages paid to workers in industry
were too low.
(b) We are 92% to 98% confident 55% of adult Americans
during the Great Depression felt wages paid to workers in
industry were too low.