THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 96

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Each member of a random sample of 20 business economists was asked to predict the rate of inflation for the coming year.Assume that the predictions for the whole population of business economists follow a normal distribution with standard deviation 2%.
-Why does the sample size play such an important role in reducing the standard error of the mean? What are the implications of increasing the sample size?

---

Definitions:

Extract More

The process of increasing the quantity taken from resources or datasets, often aiming for higher yields or more information.

Conflict Diamonds

Diamonds mined in a war zone and sold to finance an insurgency, an invading army's war efforts, or a warlord's activity.

Diamonds

Gemstones consisting of a crystalline form of carbon, often used in jewelry for adornment and considered valuable due to their rarity and physical properties.

Mined

The process of extracting minerals, metals, and other geological materials from the earth, typically through the creation of mines.