Dividing the Population into Relatively Homogeneous Groups in Order to Reduce

question 108

Multiple Choice

Dividing the population into relatively homogeneous groups in order to reduce sample size is the definition of which of the following terms?

• A)Ratio estimation.
• B)Difference estimation.
• C)Stratification.
• D)MUS sampling.

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Definitions:

Par Value

The face value of a bond or stock, representing the amount that the issuer agrees to pay at maturity or the nominal value assigned to a share of stock for accounting purposes.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, incorporating both interest payments and the increase or decrease in the bond's value to its face value at maturity.

Nominal Rate

The interest rate stated on a loan or financial instrument, not adjusted for inflation.

Real Rate Of Return

The rate of return on an investment after adjusting for inflation, representing the actual purchasing power gained.