A Car Insurance Company Would Like to Determine the Proportion

question 55

Multiple Choice

A car insurance company would like to determine the proportion of accident claims covered by the company. According to a preliminary estimate, 60 percent of the claims are covered. How large a sample should be taken to estimate the proportion of accident claims covered by the company if we want to be 98 percent confident that the sample percentage is within ±3 percent of the actual percentage of the accidents covered by the insurance company?

• A) 348
• B) 1508
• C) 1887
• D) 1443

Understand the implications of changes in net capital outflow on a country's financial position.

Interpret the dynamics of international trade and investment on economic indicators.

Evaluate how economic theories (such as purchasing-power parity) explain real-world economic behaviors and limitations.

Understand the relationship between net capital outflow and international financial transactions.