Suppose, to Select a Sample from a Population of 3000

question 26

Multiple Choice

Suppose, to select a sample from a population of 3000 persons, the following procedure is followed. The names of the people are written on identical, square pieces of thin cardboard measuring one inch on a side, and these pieces of cardboard are then tumbled in a clothes dryer (with the heat shut off) . After 30 minutes, a blindfolded person reaches in and withdraws a selected number of names. What can be said about this sample?

• A) The sample is probably biased because clothes dryers are not supposed to be used in collecting samples.
• B) The sample is probably biased because people with shorter names would be selected first.
• C) The sample is probably biased because the names on the top of the heap would be selected first.
• D) The sample is probably biased because the names toward the front of the dryer would probably be selected first.
• E) The sample is almost certainly random.

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Definitions:

Below Equilibrium Price

A situation where the price of a good or service is set lower than the market equilibrium, often leading to a shortage.

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often due to externalities, monopolies, or information asymmetries.

Efficient Outcome

An optimal allocation of resources where it is impossible to improve one party's position without worsening another's, often associated with maximized total welfare or utility in an economic context.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefits to society from the trade.