A Large Sample Size Is Important for All of the Following

question 69

Multiple Choice

A large sample size is important for all of the following reasons EXCEPT

• A) large sample sizes reduce the possibility that results are due to chance alone.
• B) large sample sizes increase the likelihood of finding a statistically significant result.
• C) large sample sizes make the results more reliable.
• D) large sample sizes increase the accuracy of the results.
• E) large sample sizes increase the likelihood that a very rare result will be noticed.

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Definitions:

Yield

The income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost or current market value.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, typically expressed in years.

Price Volatility

The rate at which the price of a security increases or decreases for a given set of returns, often measured by the standard deviation of historical daily price changes.