After Calculating the Sample Size Needed to Estimate a Population

question 30

Multiple Choice

After calculating the sample size needed to estimate a population proportion to within 0.05,you have been told that the maximum allowable error (B) must be reduced to just 0.025.If the original calculation led to a sample size of 1000,the sample size will now have to be

• A)2000.
• B)4000.
• C)1000.
• D)8000.

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Definitions:

Accrual

The accounting practice that documents income and expenditures at the time they happen, irrespective of the timing of the actual cash flows.

Retained Earnings

The amount of net profit remaining for the company after distributing dividends to its stockholders.

Note Payable

A written promise to pay a specified amount of money, along with interest, by a certain date.

Interest Expense

The cost incurred by an entity for borrowed funds, recognized in the income statement.