A Sample of 100 Students Is Selected from a Known

question 110

Multiple Choice

A sample of 100 students is selected from a known population of 1,000 students to construct a 95% confidence interval for the average SAT score. What correction factor should be used to compute the standard error?

• A) 0.949
• B) 0.901
• C) 1.96
• D) 9.01
• E) Cannot be determined

---

Definitions:

Allowance Methods

Accounting techniques used to anticipate and account for future loan losses by establishing an allowance for doubtful accounts.

Bad Debt

Money owed to a company that is unlikely to be paid by the debtor, often leading to the creditor writing it off as a loss.

Percentage of Sales

A method used to forecast financial figures, such as net income or expenses, based on a percentage of the sales volume.

Dishonored

Refers to a check or promissory note that has been refused by the bank on which it was drawn because of insufficient funds or other reasons.