The Purpose of a Pilot Sample Is

question 108

Multiple Choice

The purpose of a pilot sample is:

• A) to provide a better idea of what the population mean will be.
• B) to help clarify how the sampling process will be performed.
• C) to provide an idea of what the population standard deviation might be.
• D) to save time and money instead of having to carry out a full sampling plan.

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Definitions:

Loss Aversion

In prospect theory, the property of most people’s preferences that the pain generated by losses feels substantially more intense than the pleasure generated by gains.

Anchoring Effect

A cognitive bias where an individual relies too heavily on an initial piece of information (the "anchor") when making decisions.

Hedonic Treadmill

A theory suggesting that people continually seek new levels of stimulation or material goods to maintain happiness, but generally return to a stable level of happiness despite major positive or negative changes.

Prospect Theory

Prospect theory is a behavioral economic theory that describes how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.