List and Describe Two Reasons Why It May Be More

question 15

Essay

List and describe two reasons why it may be more effective to test hypotheses in nonrepresentative samples than representative samples.

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Definitions:

Normal Rate

The standard or average rate at which something occurs, such as interest rates, inflation, or unemployment rates.

Accounting Profit

The net income of a business as calculated by subtracting total expenses from total revenues, according to standard accounting principles.

Economic Profit

The difference between the total revenue generated by a business and the total opportunity costs of all resources used.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, representing excess return over opportunity costs.