Peggy Would Like to Conduct a Survey in Her Neighborhood

question 120

Multiple Choice

Peggy would like to conduct a survey in her neighborhood to get homeowners' opinions on the Delmarva proposal to switch to natural gas. Which of the following is an example of a convenience sample?

• A) John randomly chooses three streets and selects every third house on those streets.
• B) John selects the first 25 homes that he passes as he walks into the entrance of the development.
• C) John selects every third house on each street.
• D) John divides the population into two-story, split-level, and ranch houses. Then, he selects a proportional amount of houses from each group.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, representing the amount that contributes towards covering fixed costs and generating profit.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, used in financial analysis and grading.

Fixed Expenses

Recurring costs that do not fluctuate with the level of production or sales volume, such as lease payments or salaries.

Contribution Margin Percentage

A measure showing what percentage of sales revenue is available to cover fixed costs and contribute to net income, calculated as (Sales - Variable Costs) / Sales.