Which of the Following Statements Explains Why Nonprobability Sampling Carries

question 13

Multiple Choice

Which of the following statements explains why nonprobability sampling carries more risk of selection bias than probability sampling?

• A) Exclusion criteria are not used in nonprobability sampling.
• B) Nonprobability sampling uses strata that are not mutually exclusive.
• C) Representativeness is not a consideration in nonprobability sampling.
• D) Nonprobability sampling does not use randomization.

---

Definitions:

Risk-Free Rate

The return on investment with no risk of financial loss, typically represented by the yield on government securities.

Market Risk Premium

The extra return investors demand for choosing to invest in the market over a risk-free asset.

Capital Structure Weights

The proportions of a firm's financing that come from different types of capital, such as equity, debt, and preferred stock, used to calculate the weighted average cost of capital (WACC).

Market Value

The now rate for transactions involving the purchase or sale of assets or services.