A Student Reports That, of a Simple Random Sample of 200

question 22

Multiple Choice

A student reports that, of a simple random sample of 200 college undergraduates, 37% were female and 41% were male. We know that the student has made a mistake because

• A) it is highly unlikely that a simple random sample of 200 undergraduates would have as few as 37% females.
• B) of the possibility of response error.
• C) 37% plus 41% is not 100%.
• D) the percentages of males and females would be closer together in a true SRS.
• E) a stratified random sample would have been less prone to error.

Comprehend the importance and limits of diversification in managing investment risk.

Evaluate risk management strategies including insurance, diversification, and obtaining information.

Appreciate the value of information in uncertain decision-making scenarios.

Understand the economic principles behind supply and demand for risky assets.