Which of the Following Is TRUE

question 74

Multiple Choice

Which of the following is TRUE?

• A) When sampling from a population that is highly skewed, a cluster sample generally provides the most representative sample.
• B) Stratified sampling is a very useful sampling technique. It allows closer examination of the characteristics of particular subgroups. It also lowers the chance of error by ensuring that subgroups are adequately represented in the sample. However, this method generally produces less precise estimates of population values than simple random samples.
• C) In calculating the standard error of the mean when using a stratified sample, one finds that differences among strata means do not enter the estimate.
• D) When using proportional allocation in stratified random sampling, one samples from each of the strata in proportion to their respective variabilities.
• E) The sampling distribution of means for stratified sampling is generally less concentrated than that obtained from simple random sampling.

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Definitions:

Individual Bonds

Securities that represent a loan from an investor to a borrower, typically a corporation or government, with specified terms for interest payments and return of principal.

Bonds' Market Value

The market value of bonds is the current market price at which these debt securities can be bought or sold, influenced by interest rates, credit ratings, and other factors.

Term Bond

A bond that has a fixed maturity date on which the principal is due to be paid back in full.

Face Value

The nominal value stated on a financial instrument, such as a bond or stock certificate.