I struggled to answer this question thinking for sure the correct answer was 'nonresponse.'
A sample of households in a community is selected at random from the telephone directory. In this community, 3% of households have no telephone, 14% have only cell phones, and another 25% have unlisted telephone numbers. The sample will certainly suffer from:
A. False Responses
B.Nonresponse
C.Undercoverage
D.None of the Above
I think the the study might suffer from Nonresponse and might suffer from False Responses but it will certainly suffer from Undercoverage.
A good clue is that the information we are given only mentions that there will be a good chunk of households that are not going to be listed in the telephone directory but does not mention that people in the community have a history of not answering their home phone or have a reason to lie about the information they give.
This question was a little confusing to me as well until I realized what they were actually saying. I thought they meant the percentages were a result of a telephone poll... I don't know why... But then I realized that the percentages just meant that those people wouldn't be in the phone book, which ultimately means that they would not be included in the sample, thus resulting in undercoverage.
@Alison, @Andy, & @mark thanks for your responses! I appreciate the feedback, and I more clearly understand the question now.