Which of the Following Is False Regarding Sampling Error

question 22

Multiple Choice

Which of the following is false regarding sampling error?

• A) Rarely does a selected sample perfectly represents the population.
• B) The differences between the sample and the population refer to sampling error.
• C) Sampling techniques are developed to minimize the inherent inaccuracy of sampling.
• D) Because of sampling error, any findings based on samples cannot be generalized to the population.

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Definitions:

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A statistical range, with a given probability, that is likely to contain the true value of an unknown parameter.

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Shares of ownership in small-cap companies, often carrying higher risk but potentially offering higher returns compared to shares of larger corporations.

Capital Gains Yield

The change in price of a security over time, expressed as a percentage.

Geometric Average

A method of calculating the average rate of return that considers the compounding effect of returns over time.