A Supermarket Administrator Suspects That Idle Time Is About 20

question 60

Multiple Choice

A supermarket administrator suspects that idle time is about 20 percent for the cashier and 15 percent for the office clerk.If the administrator wants a 95 percent confidence level (z = 1.96) and a degree of precision of + 0.05 for both cashier and office clerk,how many TOTAL observations are needed?

• A)fewer than or equal to 200
• B)greater than 200 but fewer than or equal to 300
• C)greater than 300 but fewer than or equal to 400
• D)greater than 400

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Definitions:

Direct Write-Off Method

An accounting method where bad debts are written off as an expense only when they are deemed to be uncollectable.

Bad Debt Expense

The estimated amount of credit sales that a company does not expect to collect due to customer's inability to fulfill payment obligations.

Uncollectible

Financial term referring to accounts receivable that are considered unlikely to be collected due to debtor default.

GAAP

Generally Accepted Accounting Principles; a collection of commonly-followed accounting rules and standards for financial reporting.