A Consumer Research Group Is Interested in How Older Drivers

question 8

Multiple Choice

A consumer research group is interested in how older drivers view hybrid cars. Specifically, they wish to assess the percentage of drivers in the U.S.50 years of age or
Older who intend to purchase a hybrid in the next two years.They selected a systematic
Sample from a list of AARP (American Association of Retired Persons) members.
Based on this sample, they estimated the percentage to be 17%.Which of the following
Statements about this study is true?

• A)17% of all U.S.drivers 50 years of age or older intend to purchase a hybrid in the
• B)17% is a parameter.
• C)17% is a statistic.
• D)Both A and B
• E)Both A and C

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Definitions:

Risk Level

The degree of uncertainty and/or potential financial loss inherent in an investment decision.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with dividends that are paid out before those to common shareholders.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is used to finance its overall operations and growth.

Target Capital Structure

The optimal mix of debt, equity, and other securities a company aims to hold, balancing risk and return to maximise shareholder value.