Why Is the Use of Representative Samples Especially Important in Frequency

question 35

Multiple Choice

Why is the use of representative samples especially important in frequency claims?

• A)Frequency claims require very large samples, and representative samples are always large.
• B)It is unethical to make frequency claims without representative samples.
• C)It is unlikely that the accuracy of estimates can be checked.
• D)Representative samples allow for enhanced internal and external validity.

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Definitions:

Firm's Equity

The value of a company owned by its shareholders, representing the residual assets of the company after debts have been subtracted.

Dealer Markets

Markets where dealers buy and sell securities for their own accounts at their own risk.

OTC Market

The Over-the-Counter (OTC) market refers to decentralized trading of securities, such as stocks and bonds, not conducted on a formal exchange.

TSX

Stands for the Toronto Stock Exchange, which is the largest stock exchange in Canada and the third largest in North America.