A College Professor Wants to Find If Students in the U.S

question 36

Multiple Choice

A college professor wants to find if students in the U.S. colleges will find the new textbook that he has written to be useful and interesting. He decides to sample all marketing majors at the school he teaches. He believes that this group of students will be representative of the U.S. college student population. His method of sampling is most probably:

• A)census sampling.
• B)convenience sampling.
• C)judgment sampling.
• D)quota sampling.
• E)cluster sampling.

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Definitions:

Beta

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. It is used in the capital asset pricing model.

Randomly Selected Stocks

Randomly selected stocks are shares chosen without a specific criterion or pattern, used often in experimental portfolios or studies to simulate or analyze market behavior.

Expected Inflation

The anticipated rate at which the general level of prices for goods and services will rise over a period.

Market Risk Premium

Market risk premium refers to the additional return expected by investors for holding a risky market portfolio instead of risk-free assets.