A Researcher Wishes to Estimate the Number of Households with Two

question 71

Multiple Choice

A researcher wishes to estimate the number of households with two computers. How large a sample is neededin order to be 98% confident that the sample proportion will not differ from the true proportion by more than2%? A previous study indicates that the proportion of households with two computers is 20%.

• A) 2172
• B) 1537
• C) 2715
• D) 3

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Definitions:

Inventory Held

The goods and materials that a business has in stock and available to sell at a given time.

Credit Policy

The guidelines a company follows to determine the amount and terms of credit to extend to customers.

ACP

Average Collection Period, a metric that measures the average number of days it takes for a company to collect its accounts receivable.

Processing Float

The time lag between when a check is written and when it is actually deducted from the payer's account, affecting the available balance.