If the Manager Wants to Be 95

question 58

Multiple Choice

If the manager wants to be 95.44 percent confident that the true proportion of time spent mowing is within .02 (plus or minus) of the sample proportion, what should be her sample size?

• A)400
• B)1,000
• C)1,600
• D)2,000
• E)2,500

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Definitions:

Constant-Growth Model

A method used to value a company's stock by assuming a constant rate of dividend growth, often used for companies with stable growth rates.

Market Return

The total return, including capital gains and dividends, from investing in a broad market index over a specified period.

IPO Pops

The phenomenon where the price of a stock rises significantly above its initial public offering price shortly after it starts trading on the public market.

Secondary Market

This is a market where investors buy and sell securities they already own, as opposed to the primary market where securities are first issued.