In a Recent Study,the Population of the Affluent Households Was

question 17

Multiple Choice

In a recent study,the population of the affluent households was defined in four different ways: (1) households with income of $50,000 or more; (2) the top 20 percent of households,as measured by income; (3) households with net worth over $250,000;and (4) households with spendable discretionary income 30 percent higher than that of comparable households.The number and characteristics of the affluent households varied depending upon the definition,underscoring the need to avoid ________.

• A) population definition error
• B) measurement error
• C) respondent selection error
• D) sampling frame error

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Definitions:

Valuation Allowance Accounts

Accounts used to adjust the carrying value of deferred tax assets to the amount that is more likely than not to be realized.

Dividend Yield

An indicator that reveals the annual dividend payment of a company as a percentage of its stock price.

Market Price

This refers to the current price at which an asset or service can be bought or sold in a given market.

Annual Dividend

The total dividend payment a company makes to its shareholders in a fiscal year, often quoted as a rate per share.