The Smaller the Sampling Error, the ______ Representative the Sample

question 15

Multiple Choice

The smaller the sampling error, the ______ representative the sample is of the population.

• A) less
• B) more
• C) same
• D) better

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Definitions:

Payoff

The return received from an investment or the outcome of a decision or transaction.

Underlying Asset

The financial instrument (such as stocks, bonds, commodities) upon which derivatives or other financial instruments (e.g., options) are based.

Derivative Securities

Financial instruments whose value is derived from the value of one or more underlying assets or benchmarks.

Contingent Claims

Financial derivatives that pay out based on the occurrence of specific events or conditions, such as options or certain types of insurance contracts.