Why Is the Use of Representative Samples Especially Important in Frequency

question 35

Multiple Choice

Why is the use of representative samples especially important in frequency claims?

• A)Frequency claims require very large samples, and representative samples are always large.
• B)It is unethical to make frequency claims without representative samples.
• C)It is unlikely that the accuracy of estimates can be checked.
• D)Representative samples allow for enhanced internal and external validity.

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Definitions:

Risk-Free Asset

An investment with zero default risk, typically government bonds, providing a basis for comparing with riskier assets.

Beta

A method for appraising the degree of variation, or consistent peril, of a security or investment pool versus the market at large.

Expected Return

The anticipated amount of profit or loss an investment is likely to generate over a given period.

Market Return

The total return on investment in the stock market, comprising capital gains and dividends, over a specific period.