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:

Net Present Value Method

A method of analysis of proposed capital investments that focuses on the present value of the cash flows expected from the investments.

Cash Inflows

Cash inflows refer to the movement of money into a company's accounts from various sources, including sales, financing, or investment.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Net Present Value

A financial metric that calculates the value of future cash flows in today’s dollars, assessing profitability of investments or projects.