Alex, a Freshman in College, Wants to Know How Many

question 215

Multiple Choice

Alex, a freshman in college, wants to know how many of her dorm mates have tried marijuana, so she decides to survey everyone on her floor. Despite rumors to the contrary, the results suggest that fewer than ten percent of her classmates have tried the drug. What is the most likely explanation for her findings?

• A) People being interviewed often change their answers to increase the chances that they will be viewed favorably.
• B) Her dorm mates did not understand the question.
• C) Alex did not calculate the findings correctly.
• D) Surveys are not an acceptable means to gather new information.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, widely used in finance to assess the volatility of an investment.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.

Asset A

A hypothetical or specific item of economic value owned by an individual or corporation, expected to provide future benefit.

Risk-Free Rate

is the theoretical return on an investment with no risk of financial loss, typically represented by the yield on government securities such as U.S. Treasury bills.