Exhibit 1-1 In a Recent Study Based Upon an Inspection of 200

question 38

Multiple Choice

Exhibit 1-1
In a recent study based upon an inspection of 200 homes in Daisy City, 80 were found to violate one or more city codes.
-Refer to Exhibit 1-1. The manager's statement that 40% of Daisy City's 2,000 homes are in violation of city codes is

• A)an exactly correct statement
• B)only an approximation, since it is based upon sample information
• C)obviously wrong, since it is based upon a study of only 200 homes
• D)None of these alternatives is correct.

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Definitions:

Borrow

To borrow means to take something from someone for a limited time, intending to return it, often referring to money in financial contexts.

Compounded Semi-Annually

Interest calculation method where interest is added to the principal sum of a deposit or loan twice a year, hence increasing the total amount of interest earned or paid.

Payments

Amounts of money transferred from one party to another as fulfillment of financial or contractual obligations.

Compounded Annually

Interest on an investment that is calculated once a year on the principle plus any previously earned interest.