Two Industries That Have the Same Four-Firm Concentration Ratio Can

question 24

True/False

Two industries that have the same four-firm concentration ratio can have significantly different Herfindahl indexes.

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Definitions:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Survivor Bias

The analytical error of focusing on the surviving subjects of a study or process and overlooking those that did not survive due to lack of visibility.

Broad Sample

A wide-ranging or extensive group of people or items selected from a population, used for research or statistical analysis.

Survivor Bias

A logical error that involves focusing on the people or things that survived some process and inadvertently overlooking those that did not because of their lack of visibility.