Why Can We Never Be Sure That a Sample Represents

question 49

Multiple Choice

Why can we never be sure that a sample represents a population?

• A)Random selection never works the way it is supposed to work.
• B)Samples created by random selection are almost never perfectly representative.
• C)A random sample may poorly represent a population,or it may accurately represent a different population.
• D)If selection is conducted correctly,samples always accurately represent the populations they are supposed to represent.

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Definitions:

Inflation Rate

The percentage increase in the general level of prices for goods and services over a period, typically measured on an annual basis.

Real Dollars

Real dollars refer to the value of money after accounting for inflation, indicating the actual purchasing power of money.

Present Value

Today's monetary value of anticipated future money sums or cash inflow sequences, based on a predetermined rate of return.

Zero-Coupon Bonds

Bonds that do not pay interest during their lifetime and are instead issued at a discount to their face value, which is paid at maturity.