Stratifying a Population Prior to Drawing a Sample

question 42

Multiple Choice

Stratifying a population prior to drawing a sample:

• A)generally occurs when the variables used to stratify are known to be associated with the dependent variable.
• B)eliminates the need for simple random sampling.
• C)is most useful for studying a homogeneous population.
• D)eliminates the need for probability sampling.
• E)is an alternative systematic sampling.

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Definitions:

Investment Acceptance

It involves the decision-making process regarding whether to pursue or decline a particular investment opportunity based on criteria like expected returns, risk assessment, and alignment with investment strategy.

Payback Period

The length of time needed for an investment to recover its initial outlay in terms of profits or savings.

Pre-Specified Period

A defined time frame agreed upon or set before the commencement of an event or contract.

Discounted Payback

A modified payback period method that takes into account the time value of money by discounting cash flows.