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:

Cash Dividends

Payments made by a corporation to its shareholders out of the company's current or retained earnings.

Beginning Balance

The amount of money in an account at the start of a new accounting period, carried over from the end of the previous period.

Ending Balance

The final amount in an account at the end of a reporting period after all debits and credits have been accounted for.

Minimum Legal Capital

The least amount of capital that must be raised through the issue of shares for a corporation to be legally established.