Explain the Sources of Bias in Sampling

question 20

Short Answer

Explain the Sources of Bias in Sampling
-Before opening a new dealership, an auto manufacturer wants to gather information about car ownership and driving habits of the local residents. The marketing manager of the company randomly selects 1000 households from all households in the area and mails a questionnaire to them. Of the 1000 surveys mailed, she receives 70 back. Determine the type of bias.

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Definitions:

Price Decreases

Occurs when the cost of a good or service drops, often due to factors like increased supply, reduced demand, or competitive market pressures.

Substitutes

Goods or services that can be used in place of each other, where the increase in the price of one leads to an increase in demand for the other.

Price Increases

Occurs when the cost of goods or services rises over a period of time.

Demand for Good

Demand for good refers to the quantity of a product or service that consumers are willing and able to purchase at various prices during a given period.