Which of the Following Statements About Sampling Is Correct

question 26

Multiple Choice

Which of the following statements about sampling is correct?

• A)Sampling is based on the principle that a sufficiently large number drawn from a population will be representative, regardless of whether the selection was random.
• B)The survey results of a sample will be biased and therefore not reliable for formal research.
• C)Sampling is a survey technique that eliminates the need for questioning 100 percent of the population.
• D)All of the above are correct statements.

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Definitions:

Cost of Equity

The return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertook by investing their capital.

WACC

Weighted Average Cost of Capital, a calculation that reflects the cost of a company to finance its assets through a mix of equity and debt.

Level of Risk

The level of risk and possible monetary loss associated with making an investment choice.

Weighted Average Cost

A measure that calculates the average cost of goods available for sale, considering the weight of each unit's cost.