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?

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Definitions:

Endorser

A person who signs a negotiable instrument on the back to transfer ownership or to guarantee payment to someone else.

Secondarily Liable

Refers to the obligation to pay a debt or fulfill an obligation only if the primary party responsible fails to do so.

Drawer

The party that writes or creates a bill of exchange, such as a check, commanding a payment to be made to a specified person or entity.

Secondarily Liable

Responsibility or liability that kicks in when the primarily responsible party fails to fulfill their obligations.