The Uncertainty of What the Arbitrator Will Choose and the Loss

question 52

Short Answer

The uncertainty of what the arbitrator will choose and the loss of control by the negotiators over settlement terms motivate negotiators to reach their own negotiated agreement without resorting to arbitration. This is known as the _______________________________ effect.

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Definitions:

Standard Error

An estimate of the standard deviation of a sampling distribution, reflecting the accuracy with which a sample represents a population.

Confidence Interval

A span of numbers obtained from sample data, which probably includes the value of an unknown parameter from the overall population.

Sample Variance

A statistical measure that quantifies the degree to which sample points differ from the sample mean.

Population Mean

The arithmetic average of a set of values or a distribution in the entire population, representing the central location of the data.