An Editorial Writer for the East Mule Shoe Gazette Wants

question 13

Multiple Choice

An editorial writer for the East Mule Shoe Gazette wants to measure public support for a discontinued construction project that has left a city-block-size hole in the middle of the East Mule Shoe downtown area. So he uses his lunch hour one day to walk down the block adjacent to the project and ask the first 25 people who will talk to him about whether they support continuing the project. The newspaper asks readers to comment on its survey of local opinion. Readers say that:

• A) this is a simple random sample. It gives very accurate results.
• B) this is a simple random sample. The results are not biased, but the sample is so small that variation will be high.
• C) this is a census because all citizens had a chance to be asked. It gives very accurate results.
• D) the sampling method is biased. It will almost certainly overestimate the level of support among all East Mule Shoe residents.
• E) the sampling method is biased. It will almost certainly underestimate the level of support among all East Mule Shoe residents.

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Definitions:

Inventory Cost

Inventory cost refers to the total cost associated with acquiring, storing, and managing a company's inventory, including purchase costs, carrying costs, and any spoilage or shrinkage.

Physical Inventory

An actual count of all merchandise or stock on hand at a specific time.

Retained Earnings

Accumulated net income after dividends that is reinvested into the company rather than distributed to shareholders.

Income Statement

An Income Statement is a financial document that shows a company's revenue, expenses, and profits or losses over a specific period.