Financial Analyst Larry Potts Needs a Sample of 100 Securities

question 57

Multiple Choice

Financial analyst Larry Potts needs a sample of 100 securities listed on either the New York Stock Exchange (NYSE) or the American Stock Exchange (AMEX) . According to the Wall Street Journal's "Stock Market Data Bank," 2,531 NYSE securities and AMEX 746 securities were traded on the previous business day. Larry directs his staff to randomly select 77 NYSE and 23 AMEX securities. His sample is a ____________.

• A) disproportionate systematic sample
• B) disproportionate stratified sample
• C) proportionate stratified sample
• D) proportionate systematic sample
• E) proportionate cluster sampling

---

Definitions:

Positivism

A philosophical stance advocating that knowledge is only derived from logical and empirical observations, emphasizing the importance of observable evidence.

Dichotomous Conclusions

Findings or results that present an either-or situation, typically dividing outcomes into two distinct categories without overlap or continuum.

Universal Truth

A fundamental principle or fact that is valid at all times and in all places.

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis, experimentation, and conclusion.