We Have Calculated a Confidence Interval Based on a Sample

question 62

Multiple Choice

We have calculated a confidence interval based on a sample of size n = 100. Now we want to get a better estimate with a margin of error that is only one-fourth as large. How large does our new sample need to be?

• A) 400
• B) 1600
• C) 50
• D) 200
• E) 25

---

Definitions:

Predetermined Manufacturing Overhead Rates

A rate used to allocate manufacturing overhead costs to products based on a standard cost, established in advance of production.

Total Controllable

Relates to the expenses or costs over which a manager or business has direct control.

Volume Overhead Variances

The differences between the expected fixed overhead costs and the actual fixed overhead allocated, based on the volume of production.

Optimum Standards

Ideal benchmarks set for performance, quality, or efficiency that are considered best under the given conditions.