Why Is a Representative Sample Desirable

question 225

Multiple Choice

Why is a representative sample desirable?

• A) The more representative a sample is, the more generalizable the data.
• B) Such samples are random.
• C) Only representative samples yield meaningful results.
• D) Hypotheses can only be tested on representative samples.

---

Definitions:

Coupon Rate

The annual interest rate paid by a bond issuer to the bondholders, usually expressed as a percentage of the bond's face value.

Semi-Annually

A frequency of twice a year, often used in the context of payment or performance evaluation periods.

Tax Shield

The reduction in income taxes that results from taking an allowable deduction from taxable income, such as mortgage interest, depreciation, or charitable donations.

All Equity

A financial structure where a company is financed entirely through equity without any debt financing.