Tom and Mary Nesbitt Commissioned a Local University to Determine

question 48

Multiple Choice

Tom and Mary Nesbitt commissioned a local university to determine if there would be adequate demand for sailing outings on a large catamaran at a local beach frequented by vacationers.The beach was about 5 miles in length and was lined with hotels and condominiums that rented rooms and condos to thousands of visitors each year.At present,there were few water sports available and were limited to "active participant" rides,such as parasailing or kite sailing.The Nesbitts felt that if there was adequate demand,they may invest the required $750,000 needed to purchase the 110-foot-long catamaran that could carry as many as 80 passengers and a crew of eight on each trip.The Nesbitts felt that few of the persons living in the adjoining city near the beach would be in their target market.Instead,they felt 95% of their business would come from persons at the beach who would see the catamaran sailing back and forth and would walk to one of two locations to take the ride."We want a sample taken of persons who are actually on the beach during a single weekday in June," Mary said.Given that you want to have a probability sample,which of the following sample methods would likely be most appropriate?

• A)simple random sample
• B)judgment sample
• C)stratified sample
• D)cluster,area sample
• E)systematic sample

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Definitions:

Domestic Producers

Companies or individuals within a country that produce goods or services for the local market.

Tariff on Imports

A tax imposed by a government on goods and services imported from other countries, aiming to protect domestic industries.

Producer Surplus

The difference between the amount a producer is willing to accept for a good compared to what they actually receive, generally representing the benefit to producers from participating in the market.

Tariff Revenue

Revenue generated by a government from imposing taxes on imported goods.