Suppose a Student Doing a Telephone Survey for the Campus

question 68

Multiple Choice

Suppose a student doing a telephone survey for the campus newspaper asks you, "How big a sample do I need to get accurate results?" Which of the following would be the best advice you could offer?

• A) The number of cases should be at least 25 percent of the population.
• B) Only samples of 3,000 or more yield truly accurate results.
• C) That depends on the number of students at the college. The proportion of the population sampled is more important than the absolute size of the sample.
• D) Accuracy (in terms of error reduction) improves much more for increases in sample size between 100 and 1,000 than for increases in sample size between 2,000 and 3,000.

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Definitions:

Financial Instrument

A tool representing a monetary contract between parties that can be traded, such as stocks, bonds, or derivatives.

Substance Over Form

The concept that transactions and their effects should be recorded and reported in a way that reflects their economic reality rather than merely their legal form.

Legal Form

The specific legal structure of an entity or agreement, which determines its legal responsibilities, rights, and the regulatory framework it operates within.

Net Present Value

A calculation used to assess the profitability of an investment by summing the present values of its expected cash flows minus the initial investment cost.