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:

Rate of Return on Capital

The percentage return that one receives on an investment in capital assets, reflecting the profitability of the investment.

Capital Stock

The total value of all physical assets a company uses in its production process.

Business Income

Income earned from the operation of a business or the sale of goods and services.

High-wage Country

A country characterized by relatively high levels of wages for its workers compared to other nations.