You Wish to Construct a 90% Confidence Interval to Compare

question 33

Multiple Choice

You wish to construct a 90% confidence interval to compare two proportions.If we wish to obtain a margin of error of at most 0.05,what sample size should we take from each group? Assume equal sample sizes.

• A)1984
• B)271
• C)270
• D)542
• E)541

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Definitions:

Book Depreciation

The method of allocating the cost of a physical or tangible asset over its useful life for accounting and tax purposes.

Earnings and Profits

A measure used in corporate tax to assess the ability of a corporation to make distributions to its shareholders that are not considered a return of capital.

Basis

The amount of investment in property for tax purposes, used to calculate gain or loss on a sale or disposition.

Capital Gain

The profit from the sale of property or an investment, calculated as the difference between the selling price and the purchase price.