To Compute the Necessary Sample Size for an Interval Estimate

question 41

Multiple Choice

To compute the necessary sample size for an interval estimate of a population proportion, all of the following procedures are recommended when p is unknown except​

• A) ​use the sample proportion from a previous study.
• B) ​use the sample proportion from a preliminary sample.
• C) ​use 1.0 as an estimate.
• D) ​use judgment or a best guess.

Grasp the concepts of complete portfolio and the capital market line.

Understand and apply Tobin's separation property in portfolio selection.

Recognize the impact of diversification on risk reduction.

Distinguish between systematic and unsystematic risks and understand the role of beta in measuring systemic risk.

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Definitions:

Rate of Return

The percentage of net gain or loss on an investment over a specified time period.

Cash Flows

The total amount of money being transferred into and out of a business, particularly affecting the operational activities.

Annual Payment

A recurring payment made once a year for a variety of purposes, including loan repayments, leases, and annuities.

Perpetuity

A type of annuity that pays a fixed amount of money to an individual indefinitely, without a termination date.