Why Is It Important to Select a Sample That Represents

question 18

Short Answer

Why is it important to select a sample that represents the population as closely as possible?

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Definitions:

Dependent Variable

The variable in an experiment or study that is expected to change in response to changes in another variable (the independent variable).

Independent Variables

Variables in an experiment or model that are manipulated or changed to observe their effect on dependent variables, helping to determine causal relationships.

Specific Risk

The risk associated with individual securities or businesses, distinct from overall market risk, that can be mitigated through diversification.

Standard Error

A statistical term that measures the accuracy with which a sample distribution represents a population by using standard deviation.