Previous Research Shows That 60 Percent of Adults Who Drink

question 44

Multiple Choice

Previous research shows that 60 percent of adults who drink non-diet cola prefer Coca-Cola to Pepsi. Recently, an independent research firm questioned a random sample of 25 adult non-diet cola drinkers. That chance that 20 or more of these people will prefer Coca-Cola is:

• A) essentially zero.
• B) 0.0199.
• C) 0.0294.
• D) None of the above

---

Definitions:

Transactions

The exchange of goods, services, or funds between two or more parties, forming the basis of accounting records.

Debit Credit

The two aspects of every financial transaction, where debit increases assets or expenses and credit increases liabilities, equity, or income.

Par Value

The nominal value of a bond, share of stock, or coupon as stated by the issuer, often used as a legal face value.

Common Stock

Holding shares in a company grants investors a portion of ownership, allowing them to vote on corporate matters and receive a portion of the profits via dividends.