Suppose a Recent Issue of the Campus Newspaper Reported a Survey

question 5

Multiple Choice

Suppose a recent issue of the campus newspaper reported a survey about students' attitudes toward proposed changes in the required curriculum.Which of the following would you need to focus on most to decide whether the survey results reported in the paper can be generalized to the entire population of students?

• A)number of students in the sample
• B)distinctiveness of the sample
• C)representativeness of the sample
• D)variability among students in the sample

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Definitions:

Investor Risk Aversion

The tendency of investors to prefer lower-risk investments to avoid potential losses.

WACC

Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Appropriate Discount Rate

The rate used to discount future cash flows to their present value to account for risk and time value of money, reflecting the opportunity cost of capital.

Interest Rate

The share of a loan incurred as interest costs to the borrower, habitually depicted as an annual percentage of the loan's outstanding amount.