In Order to Use a Table of Random Numbers to Draw

question 68

Multiple Choice

In order to use a table of random numbers to draw a simple random sample, the researcher must

• A) serially number the sample elements.
• B) specify the parent population distribution.
• C) calculate the population variance.
• D) serially number the population elements.
• E) assume that the central-limit theorem holds for the population in question.

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Definitions:

Risk

The potential that an investment's actual return will differ from the expected return, encompassing the possibility of losing some or all of the original investment.

Real Option

A real option is a financial concept that represents the choice to undertake certain business initiatives, such as expanding, deferring, or abandoning a project, based on future opportunities.

Expected NPV

The anticipated Net Present Value of an investment, calculated using expected cash flows and discounting them to their present value.

Project's Risk

The potential for losses or less-than-expected returns from a specific investment or business project.