You Wish to Construct a 95% Confidence Interval to Compare

question 20

Multiple Choice

You wish to construct a 95% confidence interval to compare two proportions.If we wish to obtain a margin of error of at most 0.03,what sample size should we take from each group? Assume equal sample sizes.

• A)1067
• B)2134
• C)2135
• D)1068
• E)1984

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Definitions:

Variable Overhead Rate

A financial metric that represents the costs that vary with production levels in manufacturing, calculated as variable overhead costs divided by a measure of activity.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as rent, insurance, and salaries of certain employees.

Sales Budget

A financial plan that estimates future sales in terms of units and revenue.

Finished Goods Inventory

Items that have completed the manufacturing process and are ready to be sold to customers.