An Amusement Park Owner Is Considering a Survey to Determine

question 82

Multiple Choice

An amusement park owner is considering a survey to determine customer preferences for a new water ride. The owner and the researcher discuss the concept of the level of accuracy. The owner accepts a level of accuracy of + or - 5 percent. Assuming that the survey finds that 70 percent of the survey respondents indicate they want the ride, what does having a level of accuracy of + or - 5 percent accuracy actually mean?

• A) that there will be a 5 percent chance that the owner will make the wrong decision as to whether not to build the new water ride
• B) that the real percentage of the park's customers who prefer the new water ride falls between 0 and 5 percent
• C) that there is a 95 percent chance that the owner will make the right decision as to whether or not to build the new water ride
• D) that the real percentage of the park's customers who prefer the new water ride falls between 65 and 75 percent
• E) that there is a 5 percent chance, + or -, that the owner will make the right decision

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Definitions:

Modified AGI

An adjustment to adjusted gross income, including or excluding certain items, used to calculate eligibility for specific tax benefits.

Education Loan Interest

The interest paid on a loan taken out to pay for educational expenses, which may be deductible on your taxes under certain conditions.

Alimony

Payments one spouse makes to another under a separation or divorce agreement, which may have tax implications.

Recipient Spouse

The spouse who receives alimony or similar payments from the other spouse in a divorce settlement.