Consider the Following to Answer the Question(s) Below

question 8

Multiple Choice

Consider the following to answer the question(s) below:
A large software development firm recently relocated its facilities. Top management is interested in fostering good relations with their new local community and has encouraged their professional employees to engage in local service activities. They believe that the firm's professionals volunteer an average of more than 15 hours per month. If this is not the case, they will institute an incentive program to increase community involvement. A random sample of 24 professionals reported the following number of hours:
The sample has a mean of 16.6 hours and a standard deviation of 2.22 hours.
-For a more accurate determination, top management wants to estimate the average number of hours volunteered per month by their professional staff to within one hour with 99% confidence. How many randomly selected professional employees would they need to sample?

• A) 56
• B) 120
• C) 37
• D) 25
• E) 90

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Definitions:

Expenses

Expenses that a company incurs while generating income.

Real Account

a permanent account in the general ledger that tracks the value of a company's property, plant, equipment, and other non-current assets over time.

Permanent Account

A permanent account is an account that is not closed at the end of the accounting period and carries its balance over into the next period, such as assets, liabilities, and equity accounts.

Closing Entries

Entries recorded at the close of an accounting period for the purpose of moving balances from temporary to permanent accounts.