The Chamber of Commerce in a Large Midwestern City Has

question 34

Multiple Choice

The Chamber of Commerce in a large Midwestern city has stated that 70 percent of all business owners in the city favor increasing the downtown parking fees. The city council has commissioned a random sample of n = 100 business owners. Of these, 63 said that they favor increasing the parking fees. What is the probability of 63 or fewer favoring the idea if the Chamber's claim is correct?

• A) Approximately 0.0630
• B) About 0.4370
• C) Nearly 0.20
• D) About 0.9370

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Definitions:

Negligence

The failure to exercise a level of care that a reasonably prudent person would in similar circumstances, potentially causing harm or damage.

Sarbanes-Oxley Act

A U.S. federal law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures in financial statements and other corporate events.

Public Company Accounting Oversight Board

A nonprofit organization established by Congress to oversee the audits of public companies in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.

Periodic Inspections

Regular, scheduled examinations or checks to ensure compliance with standards, regulations, or operational efficiency.