In Testing a Proportion, Which of the Following Statements Is

question 131

Multiple Choice

In testing a proportion, which of the following statements is incorrect?

• A)Using α = .05 rather than α = .01 would make it more likely that H₀ will be rejected.
• B)When the sample proportion is p = .02 and n = 150, it is safe to assume normality.
• C)An 80 percent confidence interval is narrower than the 90 percent confidence interval, ceteris paribus.
• D)The sample proportion may be assumed approximately normal if the sample is large enough.

Distinguish between equity securities that do and do not qualify as investments in securities (e.g., common stocks, preferred stocks, convertible bonds, stock options).

Interpret how to account for investments in debt securities, exempting certain securities that don’t qualify.

Understand the distinctions and appropriate use of the equity method, cost method, and consolidation method for accounting for investments.

Comprehend the accounting and reporting requirements for unrealized gains and losses, including how they are reflected on the financial statements.

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