You Wish to Construct a 90% Confidence Interval to Compare

question 31

Multiple Choice

You wish to construct a 90% confidence interval to compare two proportions.If we wish to obtain a margin of error of at most 0.04,what sample size should we take from each group? Assume equal sample sizes.

• A)423
• B)846
• C)1984
• D)845
• E)422

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Definitions:

Direct Labour-based Costing System

A method of cost accounting that allocates expenses based primarily on the direct labor hours incurred in producing a product or delivering a service.

Overstated Costs

A situation where the reported cost of goods sold or expenses are higher than the actual costs incurred, potentially leading to a lower reported profit.

Product Margins

The difference between the selling price of a product and the cost of goods sold, often expressed as a percentage of sales.

Departmental Overhead Rates

Specific overhead rates assigned to different departments within a company, reflecting the unique costs incurred by each department.