By Scott Van Dorn
Polls and Surveys
Polls and surveys are interesting ways to gain insight into public opinion. However, it is important to remember, it is only a slice of the overall public sentiment, and they can often be misrepresented. This possible misrepresentation is something journalists must be aware of at all times.
Selecting Samples
While, in a perfect world, everyone in the population would be interviewed about a question, it is impossible to do. Therefore, samples of the population must be created. The sample must be as large and as unbiased as possible.

Margin of Error
The margin of error represents how accurate a survey is based on set standards. It is expressed as a percentages and takes into account the size of the sample. The more people polled – the less margin of error. For example, with a sample size of 50 with a 95% confidence level, the margin of error is 13.9%. However, with a sample size of 5,000 at the same confidence level, the margin of error is 1.4%.
The confidence level is the percentage that the pollers have confidence in their results, or the probability of getting the result shown randomly.
Census
In the Census, which tries to get an idea of the entire popluation, figures have to be adjusted to compensate for missing data. The U.S. census releases both the adjusted and unadjusted figures. City planners use the census to make maps.
Z and t scores
A z score is how much a figure is far from the mean based on the standard deviation. The formula for z scores is: (Raw score – mean)/standard deviation.
T scores are only used for smaller samples, and a table is needed to find them for each sample size.
-Example: A study done surveys 50 people about their favorite news anchor. What is the margin of error with a 95% confidence level?
A: 13.9%
Business
Business news is very important, with company quarly updates and annual reports. Journalists need a basic understanding of these as well.
Financial statements
Financial statements are documents that are sent to people interested in how the company is doing. They are normally found in the annual report.
Profit and Loss
This document is one of the most important. It tells whether the company is making or losing money. It is determined through subracting expenses from the income, but companies have different ways of calculating these figures.
Expenses include “wholesale” expenses, which is the money spent to buy the materials needed, and the “overhead” expenses, which include everything not related to the product being made. Examples of “overhead” expenses include company salaries and rent. The difference between the “wholesale” expenses and what the product is selling for is the “gross margin.” Then, subtract the overhead and taxes from the gross margin times the number of goods sold to get the “net income.”
Balance sheet
The balance sheet shows figures about the companies assets, liabilities and equity to see how the company is performing. Assets are the resources owned by the company that have economic value, and is always equal to the liabilities plus the equity on the balance sheet.
Other Figures
The ratio analysis determines the company’s cash situation, profitability, operating efficiency and market value. It is often used to compare companies with similar interests.
The current ratio delves into to how well the company is able to meet its liabilities. The formula for current ratio is: current assets/current liabilities.
The debt-to-asset ratio is similar to the current ratio, but includes all liabilities. The formula is: total liabilities/total assets.
There are other figures that go into businesses as well that a journalist may need to research to determine how to analyze them.
Example: A merchant is selling a rocking chair for $150. The nails, wood and other materials cost him $50. He also hired an employee to work on the chair for $15/hr. The employee worked two hours on the chair. What is the gross margin?
A: $100. The gross margin does not include the overhead, which is the employees salary.
Stocks and Bonds
Businesses need to make money somehow. Stocks and bonds are one way they do it. Again, it is important for a journalist to understand the basic principles.
People buy stocks from companies as an investment, and the individual becomes part owner of the company. The price of the stock fluctuates with how many people want to buy it. The more demand, the higher the price. Futures expectations and publicity also have roles in determining a stocks value.
Mutual funds are slightly different. They are companies people invest in that in turn invest in a variety of companies.
Bonds, however, are more like loans. They don’t have much risk of fluctuation, and gain interest at a set rate. When the bond matures over time, the investor will get the “face value” of the bond. The “current yield” of a bond is: (interest rate*face value)/price. The bond cost is: amount*rate*years.
Market Indexes
Market Indexes created after investment analysts analyze the market. The Dow Jones Industrial Average is one type of index. It takes the total value of one share of 30 select stocks and divides it by the divisor. The divisor figure takes a few different types of market analyzing figures into account.
NASDAQ, which is an acronym for National Association of Securities Dealers Automated Quotations, reports the trading of stocks and bonds not listed in regular stock markets. It takes into account over 5,000 securities.
Example: John bought a bond for $400 with a 1.6% interest rate. He has had the bond for three years. How much accumulated interest does he have?
A: $72
Property Taxes
Property taxes is a large part of how the local government gets money, and are therefore important to know how to calculate. The rate is determined by taking the amount of money needed divided by the property holders in the area. The more value an owner has, the more he or she pays. The value of a property is also usually assessed by the government, and not how much the house would actually sell for.
One of the biggest issues a journalist might have to deal with is reappraisal, which is when property values are updated in accordance with the current market value. This can happen at any specified period of time depending on the area. To prevent corruption by local government, state governments often regulate the process of reappraisal.
Property taxes are measured in units called mills, which is 1/10 of a cent.
The formula for the mill levy is: Taxes to be collected by the government/assessed valuation of all property in the taxing district.
The appraisal value is based on the property’s use, the property’s characteristics such as location and age, current market conditions and a visual inspection by trained appraisers.
The formula for assessed value is: Appraisal value*rate.
The formula for tax owed is: Tax rate*(assessed value of the property/$100).
Example: A town’s budget is $150,000. What is the tax rate if all the assessed value of property in the town is $30 million?
A: 5 mills