If the Sample Size Is Multiplied by 4, What Happens

question 1

Multiple Choice

If the sample size is multiplied by 4, what happens to the standard deviation of the distribution of sample means?

• A)The standard error is halved.
• B)The standard error is decreased by a factor of 4.
• C)The standard error is doubled.
• D)The standard error is increased by a factor of 4.

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Definitions:

Annual Cash Savings

The amount of money saved in a year through various cost-cutting measures or efficiency improvements.

Salvage Value

An asset's expected selling price once it has concluded its functional life.

Financially Attractive

Describes an investment, project, or acquisition that promises significant financial returns or benefits.

Discount Rate

This particular interest rate is utilized for assessing the present value of cash flows to be received in the future, as per discounted cash flow analysis.