Elwin Osbourne, CIO at GFS, Inc

question 15

Multiple Choice

Elwin Osbourne, CIO at GFS, Inc., is studying employee use of GFS e-mail for non-business communications.A random sample of 200 e-mail messages was selected.Thirty of the messages were not business related.The 90% confidence interval for the population proportion is _________.

• A)0.108 to 0.192
• B)0.153 to 0.247
• C)0.091 to 0.209
• D)0.145 to 0.255
• E)0.255 to 0.265

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Definitions:

Gross Method

A method of recording purchases at the gross invoice amount before any trade discounts are subtracted.

Hedging

A strategy used in financial management to offset potential losses or gains that may be incurred by a companion investment, thereby reducing the risk of adverse price movements.

IFRS

International Financial Reporting Standards, a set of global accounting guidelines providing a common language for business affairs so that company accounts are understandable and comparable across international boundaries.

Gross Method

An accounting approach for recording purchases or sales of inventory where discounts are not taken into account until they are actually realized.