A Researcher Is Interested in Studying a Nationwide Representative Sample

question 107

Multiple Choice

A researcher is interested in studying a nationwide representative sample of the United States. She randomly chooses places to study using census tracts. She then randomly samples within each census tract from among the households within those tracts. What sampling method did this researcher use?

• A) Stratified random
• B) One-stage cluster
• C) Two-stage cluster
• D) Purposive

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Definitions:

Inefficient Market

A market in which asset prices do not always accurately reflect all available information, potentially allowing investors to earn abnormal returns.

Maurice Kendall

Maurice Kendall was a British statistician known for his significant contributions to the field of statistics, including work in time series analysis and the development of the Kendall rank correlation coefficient.

Stock Returns

The gain or loss made from trading a stock, usually measured as the change in capital plus dividends in a given period.

EMH

The Efficient Market Hypothesis, a theory stating that stock prices fully reflect all available information, making it impossible to consistently achieve higher returns.