Elwin Osbourne, CIO at GFS, Inc

question 77

Multiple Choice

Elwin Osbourne, CIO at GFS, Inc., is studying employee use of GFS e-mail for non-business communications.He plans to use a 98% confidence interval estimate of the proportion of e-mail messages that are non-business; he will accept a 0.05 error.Previous studies indicate that approximately 30% of employee e-mail is not business related.Elwin should sample approximately _______ e-mail messages.

• A)323
• B)12
• C)456
• D)14
• E)100

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Definitions:

Amortized

Refers to the process of paying off debt over time in regular installments of interest and principal sufficient to repay the loan in full by its maturity date.

Principal

The original amount of money loaned or invested, separate from the interest or earnings it accrues over time.

Future Value

The amount of money an investment is expected to grow to over a period of time, considering interest or returns.

Unequal Payments

Payments that vary in amount over a period, commonly seen in loan repayments or investment returns that do not have a fixed payment schedule.