Telephone Directories Are Notorious for Being Inadequate Sampling Frames

question 11

Essay

Telephone directories are notorious for being inadequate sampling frames. Suppose the population were defined as "all telephone subscribers in the directory's service area." What criticisms could you make of the telephone directory as a sampling frame?​

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Definitions:

Diversification

Diversification is an investment strategy that involves spreading investments across various financial instruments, industries, and other categories to reduce exposure to any single asset or risk.

Increase Risk

The action or process of raising the level of danger or the chance of loss in a financial investment or business venture.

Expected Rate

The predicted interest rate or return for an investment over a specific period.

Diversification Effects

The reduction in risk achieved by investing in a variety of assets, thus minimizing the impact of poor performance from any single asset.