Suppose That the Actual Proportion of People at a Particular

question 15

Multiple Choice

Suppose that the actual proportion of people at a particular company who use their bicycles to travel to job is 0.35. In a study of bicycle parking places needs, administration would like to estimate this proportion. They plan to take a random sample of 50 employees and use the sample proportion who use bicycles, , as an estimate of the population proportion. Estimate the standard deviation of the sample distribution. Suppose that another sample of different size has been selected, and the standard deviation of this new sample is . Would you expect more or less sample-to-sample variability in the sample proportions than for when ? Is the sample size that resulted in larger or smaller than 50?

• A)The standard deviation for the initial sample of the size is .Since the standard deviation is greater than , sample-to-sample variability is less and the new sample size is smaller.
• B)The standard deviation for the initial sample of the size is .Since the standard deviation is less than , sample-to-sample variability is more and the new sample size is larger.
• C)The standard deviation for the initial sample of the size is .Since the standard deviation is greater than , sample-to-sample variability is more and the new sample size is smaller.
• D)The standard deviation for the initial sample of the size is .Since the standard deviation is greater than , sample-to-sample variability is more and the new sample size is smaller.
• E)The standard deviation for the initial sample of the size is .Since the standard deviation is greater than , sample-to-sample variability is less and the new sample size is larger.

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Definitions:

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding costs related to production.

Straight-line Depreciation

A technique for distributing the expense of a physical asset evenly over its lifespan in yearly amounts.

Spare Parts

Components kept on hand for the purpose of replacing failed or worn-out parts in order to maintain the functioning of machinery or equipment.

Equivalent Annual Cost

A financial analysis tool used to compare the cost-effectiveness of two or more investment projects with differing lifespans by calculating the annual cost of each project over its life.