Which Statement About Bias Is True

question 95

Multiple Choice

Which statement about bias is true?
I. Bias results from random variation and will always be present.
II. Bias results from a sampling method likely to produce samples that do not represent the population.
III. Bias is usually reduced when sample size is larger.

• A) II and III only
• B) II only
• C) III only
• D) I and III only
• E) I only

---

Definitions:

Quarterly Compounding

The process of calculating interest earned on an investment or loan every three months, leading to interest being earned on interest.

Compounded Quarterly

The process of computing interest on a principal sum where the interest is calculated every quarter and added to the sum, leading to interest earned on interest.

Monthly Compounding

The process where interest is calculated on a monthly basis and added to the principal, allowing the investment to grow with each month.

Average Annual Rate

A calculated mean that represents the per-year interest rate over the term of a loan or investment.