ABC Incorporated Wants to Find Out the Proportion of Customers

question 35

Multiple Choice

ABC Incorporated wants to find out the proportion of customers who would purchase their new product.They have decided to take a modest sample, look at the results, and then decide if more information, in the form of a larger sample, is needed.ABC is using

• A)simple random sampling.
• B)biased random sampling.
• C)stratified sampling.
• D)sequential sampling.
• E)none of the above.

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Definitions:

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, considering the account type (asset, liability, etc.).

Double-Entry Accounting

A bookkeeping system that records each transaction in two accounts, ensuring that the accounting equation (Assets = Liabilities + Equity) remains balanced.

Transaction Recorded Twice

This refers to a bookkeeping error where a financial transaction is mistakenly entered into an accounting system more than once, potentially distorting financial statements.

Liabilities

Debts or financial responsibilities that a company has towards others, requiring settlement via the transfer of economic resources over a period.