Selection Bias Occurs When the Sample Is Mistakenly Divided into Strata

question 40

True/False

Selection bias occurs when the sample is mistakenly divided into strata, and random samples are drawn from each stratum.

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Definitions:

Saving

The portion of income that is not spent on consumption but rather set aside for future use or emergencies, contributing to personal and national wealth.

Autonomous Consumption

The level of consumption that occurs when income is zero, reflecting expenses that are necessary or committed.

Induced Consumption

The portion of consumption that changes in response to changes in income, where higher income levels lead to higher consumption.

Disposable Income

Funds available for saving or spending once taxes and contributions to social security are deducted.