If We Take a Simple Random Sample of Size N

question 20

Multiple Choice

If we take a simple random sample of size n = 500 from a population of size 500,000, the variability of our estimate will be

• A) less than the bias.
• B) approximately the same as the variability for a sample of size n = 500 from a population of size 50,000,000.
• C) plus or minus 0.1%.
• D) much greater than the variability for a sample of size n = 500 from a population of size 50,000,000.
• E) much less than the variability for a sample of size n = 500 from a population of size 50,000,000.

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Definitions:

Quintile Distribution

The division of a population or dataset into five equal groups or parts, often used in economic studies to analyze income or wealth distribution.

Before-Tax Household Income

The total income earned by a household before any taxes are deducted.

Greater Inequality

Refers to an increase in the unequal distribution of resources, wealth, or opportunities within a society or between different societies.

Income Distribution

The way in which a nation’s total earnings are spread among its population, affecting economic inequality.