Refer to the Information Provided in Scenario 21

question 91

Multiple Choice

Refer to the information provided in Scenario 21.6 below to answer the questions that follow.
SCENARIO 21.6: Following is information pertaining to four surveys:
Survey 1: 50 pre-law students at Vanderbilt University are surveyed for a study to see if taking an LSAT preparation course was effective in improving their chance of being admitted to law school.
Survey 2: 600 newly hired Houston-area elementary school teachers are surveyed for a study to determine how much salary they were willing to sacrifice to get a job teaching in a school with a high-quality reputation.
Survey 3: 950 people are surveyed 6 months after buying a new car for a study to see how satisfied they are with their purchase.
Survey 4: 75 people are surveyed in front of 5 different casinos on the Las Vegas Strip fo a study to determine the average daily gambling budget of a Las Vegas visitor.
-Refer to Scenario 21.6. Of the four surveys, which is likely to be the most statistically significant?

• A) Survey 1
• B) Survey 2
• C) Survey 3
• D) Survey 4

---

Definitions:

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up during a financial period.

Contra Asset

An account on a company’s balance sheet holding a balance that is opposite to the normal account balance, such as accumulated depreciation.

Accrued Expense

An expense that has been incurred but not yet paid or recorded in the accounting records.

Annual Property Taxes

Taxes levied by local governments on the value of real estate property, paid yearly by the property owners.