A Polling Company Surveys 200 People Outside a County Courthouse

question 63

Multiple Choice

A polling company surveys 200 people outside a county courthouse concerning tighter restrictions on smoking in public buildings. Their results indicate that 34% of those surveyed favor tighter restrictions. The actual proportion of county residents who favor tighter restrictions is 65%. The difference is most likely due to:

• A) variability in sampling.
• B) bias due to the use of a convenience sample.
• C) confounding variables in the survey.
• D) the wording of the survey.

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Definitions:

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Liquidity

A firm’s cash and marketable securities position, refers to its ability to meet maturing obligations. A liquid asset is any asset that can be quickly sold and converted to cash at its “fair” value. Active markets provide liquidity.

Inventory Turnover Ratio

Sales divided by inventories.