Political Research Associates Has Been Hired to Conduct a Survey

question 20

Multiple Choice

Political Research Associates has been hired to conduct a survey to determine the percentage of voters. If the election were held today, who would vote for Candidate X for president? Candidate X has not even announced her candidacy for president and there are no previous surveys that would indicate voter preferences. Still, Political Research Associates must estimate the variance in the population in order to determine the size of the sample they need for their survey for Candidate X. Which of the following would be the wisest choice for estimating variance?

• A) ±5 percent
• B) p = 1.96
• C) q = 100 percent, p = 50 percent
• D) p = 50 percent, q = 50 percent
• E) n = 51 percent, q = 49 percent

---

Definitions:

Protection Buyers

In derivatives trading, individuals or entities that purchase credit protection to hedge against potential losses from a credit event like default.

Convertible Securities

Bonds or preferred stocks that can be exchanged for (converted into) common stock, under specific terms, at the option of the holder. Unlike the exercise of warrants, conversion of a convertible security does not provide additional capital to the issuer.

Preferred Stocks

A type of stock that gives holders preference over common stockholders in terms of dividends and asset liquidation.

Common Stock

Equity ownership shares in a corporation, giving holders voting rights and a claim on a portion of the company's profits via dividends.