I One Factor in Determining the Size of a Sample

question 32

Multiple Choice

i. One factor in determining the size of a sample is the degree of confidence selected. This is usually 0.95 or 0.99, but it may be any degree of confidence you specify. ii. 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.
iii. The variation in the population as measured by the standard deviation has little or no effect in determining the size of a sample selected from the population.

• 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) (i) and (ii) are correct statements but not (iii).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Lump Payment

A single, large payment made at once, instead of breaking it into smaller installments.

Amortization Period

The length of time over which the principal amount of a loan, mortgage, or other debt is scheduled to be paid off.

Amortization Period

The length of time it takes to pay off a loan or mortgage in full with regular payments that cover both principal and interest.

Compounded Monthly

A method of calculating interest where the interest earned each month is added to the principal, so the balance doesn't merely grow; it grows at an increasing rate.