Which Method of Substitution Is Best Illustrated in the Following

question 30

Multiple Choice

Which method of substitution is best illustrated in the following example? Typical response rate for mail surveys is 20 percent and the desired final sample should be 200. Therefore, the initial sample size should be 1000.

• A) drop-down substitution
• B) drop-up substitution
• C) oversampling
• D) resampling
• E) logical substitution

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Definitions:

Minimum Cash Balance

The lowest amount of cash that a business decides to maintain in its accounts to ensure sufficient liquidity for routine operations.

Cash Disbursements

The outflow of cash for various purposes, including operating expenses, asset acquisitions, and debt payments.

Cash Receipts

The sum of all money received by a company during a specified period, from operations, investments, and financing.

Depreciation Expense

The portion of the cost of a fixed asset that is recorded as an expense each year of its useful life.