A Noted Psychic Was Tested for Extrasensory Perception

question 29

Multiple Choice

A noted psychic was tested for extrasensory perception.The psychic was presented with 200 cards face down and asked to determine if each card were one of five symbols: a star,a cross,a circle,a square,or three wavy lines.The psychic was correct in 50 cases.Let p represent the probability that the psychic correctly identifies the symbol on the card in a random trial.Assume the 200 trials can be treated as a simple random sample from the population of all guesses the psychic would make in his lifetime.How large a sample n would you need to estimate p with a margin of error of 0.01 with 95% confidence? Use the hypothesized value p = 0.20 as the value for p^*.

• A)n = 32
• B)n = 1537
• C)n = 6147
• D)n = 9604

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Definitions:

Closing Entry

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent ones and prepare the company's books for the next period.

Income Summary

An account in the ledger that is used to gather all temporary accounts during the closing process, to transfer their balances to permanent accounts.

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to reinvest in its core business or to pay debt.

Balance Sheet

A business statement that consolidates the assets, debts, and shareholder equity of a company at a certain point.