Elwin Osbourne,CIO at GFS,Inc

question 12

Multiple Choice

Elwin Osbourne,CIO at GFS,Inc.,is studying employee use of GFS e-mail for non-business communications.He plans to use a 98% confidence interval estimate of the proportion of e-mail messages that are non-business; he will accept a 0.05 error. Previous studies indicate that approximately 30% of employee e-mail is not business related.Elwin should sample _______ e-mail messages.

• A) 323
• B) 12
• C) 457
• D) 14
• E) 100

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but not control them.

Significant Influence

A level of control or impact an investor has over an investee, typically indicated by ownership of 20% to 50% of voting shares, allowing influence over business decisions without full control.

Intercompany Transactions

Financial transactions occurring between two divisions or subsidiaries within the same parent company.

Strategic Investment

An investment made by a company to build a lasting interest in a related company to help further business objectives.