I the Higher the Degree of Confidence, the Larger the Sample

question 102

Multiple Choice

i. The higher the degree of confidence, the larger the sample required to give a certain precision. ii. To determine the size of a sample, the standard deviation of the population must be estimated by either taking a pilot survey or by approximating it based on knowledge of the population.
iii. One factor in determining the size of a sample is the maximum allowable error that you must decide on. It is the maximum error you will tolerate at a specified level of confidence.

• A) (i), (ii), and (iii) are all correct statements.
• B) (iii) is a correct statement but not (i) or (ii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Depository Bank

A financial institution where deposits are made, held, and managed; also facilitates financial transactions for clients.

Settlement

An agreement reached between parties in a dispute, where usually one party agrees to provide compensation to the other, ending the dispute outside of court.

Creditor

An individual, company, or institution to whom money is owed by another party, the debtor.