Financial Analyst Larry Potts Needs a Sample of 100 Securities

question 33

Multiple Choice

Financial analyst Larry Potts needs a sample of 100 securities listed on the New York Stock Exchange.The current issue of the Wall Street Journal has an alphabetical list of the 2,531 securities traded on the previous business day.Larry randomly selects the 7th security as a starting point, and selects every 25th security thereafter (7, 32, 57, etc.) .His sample is a ____________.

• A)quota sample
• B)simple random sample
• C)stratified sample
• D)systematic sample
• E)cluster sample

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Definitions:

Elasticity

A measure in economics that indicates how the quantity demanded or supplied of a product changes in response to a change in price.

Supply

Represents the total amount of a specific good or service that is available to consumers.

Income Elasticity

measures how much the quantity demanded of a good changes in response to a change in consumers' income.

Midpoint Method

A technique used in economics to calculate the percentage change between two values, averaging the initial and final values to estimate elasticity.