A Statewide Sample Survey Is to Be Made

question 16

Multiple Choice

A statewide sample survey is to be made. First, the state is subdivided into counties. Seven counties are selected at random and further sampling is concentrated on these seven counties. What type of sampling is this?

• A) Simple random
• B) Systematic random sampling
• C) Cluster sampling
• D) Stratified sampling

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Definitions:

Arbitrage

The practice of profiting from price differences of the same asset in different markets, exploiting inefficiencies without market risk by simultaneously buying and selling.

Expected Rate of Return

The mean amount of profit or loss one can expect from an investment, accounting for all possible outcomes.

Adjusted Beta

A measure that adjusts a security's beta (volatility relative to the market) based on its historical performance, to provide a more relevant estimation of its future volatility.

Unadjusted Beta

The beta of a stock calculated directly from historical data, without applying any adjustments for its specific characteristics.