A Gallup Poll Asked, "What Is Your Favorite Summer Olympics

question 21

Multiple Choice

A Gallup Poll asked, "What is your favorite Summer Olympics event?" Of the people asked, 27 percent said, "swimming." Here is what Gallup says about the accuracy of this poll:
The results are based on telephone interviews with a sample of 1007 national adults, aged 18 years and older. For results based on the total sample of national adults, one can say with 95 percent confidence that the maximum error attributable to sampling and other random effects is plus or minus 3 percentage points. In addition to sampling error, question wording and practical difficulties in conducting surveys can introduce error or bias into the findings of public opinion polls.
Suppose 500 people in the sample of 1007 adults were women. Gallup asked these 500 women, "What is your favorite Summer Olympic event?" Thirty-five percent said swimming was their favorite. Gallup gave a margin of error for this result. Applying the quick method, one finds that the margin of error for 95 percent confidence changes when the sample size drops from 1007 to 500, from:

• A) 4.5 percent to 3.2 percent.
• B) 3.2 percent to 4.5 percent.
• C) 3 percent to 1.5 percent.
• D) 3 percent to 6 percent.

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Definitions:

Expenses Against Revenues

The matching principle in accounting that involves recording expenses in the period in which they helped to generate revenues.

LIFO Perpetual

A perpetual inventory system that uses the Last-In, First-Out method to account for inventory costs, where the most recently acquired items are considered sold first.

FIFO

First In, First Out, an inventory valuation method where goods purchased or produced first are sold or used first.