Suppose State Lawmakers Are Interested in Finding Out Whether a Newly

question 20

Multiple Choice

Suppose state lawmakers are interested in finding out whether a newly instituted state program about distracted driving is effective. A statistician divides the state into three regions then
Randomly selects a sample of adult licensed drivers from each region. Participants are then asked to
Fill out a questionnaire about distracted driving. What kind of sampling does this illustrate?

• A) Stratified
• B) Random Sampling
• C) Cluster
• D) Systematic

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Definitions:

Market Risk Premium

The difference between the expected return on a market portfolio and the risk-free rate.

Portfolio Beta

A measure of a portfolio's sensitivity to market movements, indicating its volatility relative to the market.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, typically represented by the yield on government securities like U.S. Treasury bonds.

Sample Standard Deviation

A measure of the dispersion or variability in a subset of data from its mean, used to estimate the standard deviation of the entire population.