A Researcher Wants to Determine the Sample Size Necessary to Adequately

question 34

Multiple Choice

A researcher wants to determine the sample size necessary to adequately conduct a study to estimate the population mean to within 5 points.The range of population values is 80 and the researcher plans to use a 90% level of confidence.The sample size should be at least _______.

• A)44
• B)62
• C)216
• D)692
• E)700

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Definitions:

Risk-adjusted Cost

A financial measure that adjusts the costs of an investment by considering the risk involved, accounting for the riskier nature of some investments compared to others.

Common Stock

A form of corporate equity ownership, a type of security representing units of ownership or equity in a corporation.

Zero-growth Perpetuity

A type of investment that pays a fixed amount of cash flows indefinitely, with no expectation of growth in the payments.

Stable Cash Flow Patterns

A financial condition where the inflows and outflows of cash are predictable and consistent over time, facilitating business planning.