A Student Reports That, of a Simple Random Sample of 50

question 2

Multiple Choice

A student reports that, of a simple random sample of 50 college undergraduate students, 21% were taking more than fifteen credit hours. We know that the student has made a mistake (or maybe really did not conduct the survey) . Why?

• A) There are 50 students in the sample, so percentages should be multiples of 2%.
• B) There are 50 students in the sample, so percentages should be multiples of 0.02%.
• C) 21% of 50 students is 10.5 students, and you cannot sample a fraction of a student.
• D) Both A and C are correct.
• E) Both B and C are correct.

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Definitions:

Present Value

The immediate value of a future money amount or a stream of cash inflows, based on a certain rate of return.

Accumulated Other Comprehensive Income

A component of shareholders' equity that includes income, gains, and losses that are excluded from net income, reflecting changes in equity from non-owner sources.

Sinking Funds

A method for a company to pay off debt by setting aside money over time, ensuring funds are available to repay the debt or replace an asset.

Current Liability

A company's debts or obligations that are due within one year or within the normal operating cycle, necessitating the use of current assets or the creation of new current liabilities.