Those Who Engage in Estimation Insist on Random Sampling, Rather

question 90

Multiple Choice

Those who engage in estimation insist on random sampling, rather than convenience sampling or judgment sampling, because random sampling:

• A) avoids the errors inherent in matched-pairs sampling
• B) avoids the errors inherent in work sampling
• C) avoids the errors inherent in voluntary response sampling
• D) eliminates the systematic error or bias that arises in nonrandom sampling
• E) achieves all of these

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Definitions:

Price Elasticity

A metric that reflects the degree to which the demand for a product changes in response to alterations in its price, indicating consumer sensitivity to price fluctuations.

Marginal Cost

The cost of producing an additional unit of output, which is an important factor in economic decision making.

Profit-maximizing Price

The price that results in the maximum possible profit for a firm, based on its cost structure and demand for its products.

Elasticity of Demand

A gauge for understanding how price changes influence the consumer demand for a particular good.