As You Increase the Number of Observations in a Sample

question 62

Multiple Choice

As you increase the number of observations in a sample from 50 to 500, you are most likely to

• A) leave the mean and standard deviation approximately unchanged.
• B) increase the variability as the sample size increases.
• C) decrease the variability as the sample size increases.
• D) make the shape of the distribution more skewed.

---

Definitions:

Tacit Collusion

An unspoken, implicit agreement among competitors to avoid certain competitive behaviors, such as price undercutting, to stabilize the market and maintain higher prices.

Cartel

An association of independent companies or entities that agree to limit competition between themselves, often to control prices and production in a particular market.

Allocative Efficiency

A state of the economy in which the distribution of resources among different uses is optimal, reflecting consumer preferences and maximizing total societal welfare.

Productive Efficiency

A situation in which a goods or services are produced at the lowest possible cost, utilizing all available resources efficiently.