(I the Type of Sampling When a Population Is First

question 2

Multiple Choice

(i. The type of sampling when a population is first divided into subgroups and then a sample is selected from each subgroup is called random sampling. (ii) Auditors may select every 20th file starting with say, the 5th file in the top drawer. Then file numbers 25, 45, 65, 85, are audited. This type of sampling is called systematic sampling.
(iii) The mean of a population is called a parameter.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• 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:

Project's Liquidity

An assessment of a project's ability to convert its assets to cash quickly without significant loss in value, to meet short-term obligations.

WACC

Weighted Average Cost of Capital (WACC) is the average rate of return a company is expected to pay its security holders to finance its assets.

IRR

Internal Rate of Return; a financial metric used to estimate the profitability of potential investments.

NPVs

NPVs, or Net Present Values, is a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.