Which of the Following Is True About the Difference Between

question 32

Multiple Choice

Which of the following is true about the difference between random and systematic error?

• A) Random error is self-canceling, whereas systematic error tends to increase or decrease the scores on the measured variable.
• B) Random error tends to increase or decrease the scores on the dependent variable, whereas systematic error is self-canceling.
• C) Both random error and systematic error are self-canceling.
• D) Because systematic error is self-canceling, it is less problematic in research than is random error.

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Definitions:

Open Market Operations

These are financial activities where central banks buy or sell government securities in the open market to control the money supply and influence interest rates.

Required Reserve Ratio

The fraction of deposits that a bank is mandated by regulations to hold in reserve and not loan out.

Excess Reserves

The amount of reserves that a bank holds beyond the required minimum, which can be loaned out to generate earnings.

Open Market Operations

A monetary policy tool used by central banks to control the money supply by buying or selling government securities in the open market.