Which of the Following Is True About Sampling Errors

question 44

Multiple Choice

Which of the following is true about sampling errors?

• A) They are caused by the size of the sample.
• B) They can be reduced by decreasing the sample volume.
• C) They cannot be measured statistically.
• D) They cannot be measured directly.
• E) They occur when the findings based on the sample and the true values for a population overlap.

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Definitions:

Capital

Financial assets or their financial value, including funds in deposit accounts, as well as the machinery, buildings, or equipment used in producing goods and services.

Nondiversifiable Risk

A type of risk that cannot be eliminated through diversification and affects all investments across the market.

Weighted Average

A mean where each value in the data set is multiplied by an assigned weight before the final calculation is performed.

Expected Return

Expected return is the anticipated amount of profit or loss an investment is likely to generate over a specific period.