- This topic has 4 replies, 3 voices, and was last updated Apr-188:24 am by
.
-
Posts
-
-
Up0
An analyst samples random stocks from the market using the simple random sampling method. The first stock sampled returned 10% in 2012, and the mean 2012 return of the analyst’s entire sampled portfolio is 14%. If the market return in 2012 was 16%, the absolute value of the analyst’s sampling error is closest to:
- 2%
- 4%
- 6%
-
Up5
*fist pump*
-
Up4
Ignore comment.
-
Up2
It’s the difference between the same and the population right? I am assuming the market return would be the population
-
Up2
The sampling error is the difference between the observed
value and the value it was intended to represent. In this case, the observed
value was the mean return, or 14%. The actual mean return was 16%, so the
sampling error was 2%.
-
Viewing 4 reply threads
- You must be logged in to reply to this topic.