Provide an Appropriate Response

question 87

Multiple Choice

Provide an appropriate response.
-This exercise gives a headline and a brief description of the statistical news story that accompanied the headline. Tell Whether the headline accurately represents the story.
Headline: "Looks more important than intelligence" Story Summary: A survey found that 78% of 400 people interviewed by phone ranked looks in a mate as Important or very important, while 71% ranked intelligence in a mate as important or very important.

• A)The story does not include the margin of error. However, with a sample size of 400, the margin of error is around 2 percentage points, so the likely range for looks in a mate is 76% to 80% and the likely range for Intelligence in a mate is 69% to 73%. Because these ranges do not overlap, it is quite possible that the Headline is correct.
• B)The story does not include the margin of error. With a sample size of 400, the margin of error is around 5 percentage points, so the likely range for looks in a mate is 73% to 83% and the likely range for intelligence In a mate is 66% to 76%. Because these ranges overlap, it is quite possible that the headline is incorrect.

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Definitions:

Consolidated Balance

A financial statement that combines the assets, liabilities, and equity of a parent company and its subsidiaries into one report.

Partial Equity Method

An accounting method used when an investing entity has significant influence but not full control over the investee, involving recording investments at cost and adjusting for the investor’s share of periodic net income or loss of the investee.

Dividends Received

Income received by investors, typically shareholders of a corporation, from the profits of the company.

Investee

A company in which another entity has invested, granting the investor a level of influence or control over its operations.