Three Randomly Selected Households Are Surveyed as a Pilot Project

question 71

Essay

Three randomly selected households are surveyed as a pilot project for a larger survey to be conducted later. The numbers of people in the households are 1, 3, and 9. Consider the values of 1, 3, and 9 to be a population. Assume that samples of size n = 2 are randomly selected with replacement from the population of 1, 3, and 9. The nine different samples are as follows: (1, 1), (1, 3), (1, 9), (3, 1), (3, 3), (3, 9), (9, 1), (9, 3), and (9, 9).
(i) Find the variance of each of the nine samples, then summarize the sampling distribution of the variances in the format of a table representing the probability distribution.
(ii) Compare the population variance to the mean of the sample variances.
(iii) Do the sample variances target the value of the population variance? In general, do variances make good estimators of population variances? Why or why not?

Understand the concept of insider trading and its legal implications.

Comprehend the exemptions from registration requirements for certain offerings and businesses.

Grasp the continuous disclosure requirements under the Securities Exchange Act of 1934.

Understand the liability for misrepresentation and fraud in securities offerings and trading.

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Definitions:

Recognizable Brand Name

A brand name that is widely known among the public and is easily recalled or recognized due to its reputation or marketing.

Monopoly Power

Refers to the ability of a firm or entity to control the market price and output of a product or service, due to lack of competition.

Perfect Competitor

An individual or firm operating in a perfect competition market structure, unable to influence the market price and thus takes it as given.

Essential Resource

A fundamental input or commodity that is considered vital for the production of goods and services and the functioning of an economy or ecosystem.