To judge a statistical relationship, should a researcher preferably rely on a small sample or a large sample? Explain your answer
What will be an ideal response?
A key strength of economic and statistical analysis is the amount of data used. Small samples are not representative of the entire population. Therefore, the predictions of a model based on smaller samples may be only a very weak approximation of some real world phenomena and lead to inaccurate predictions. Using a larger sample, or in other words, a lot of data, strengthens the force of an empirical argument as the researchers can make more precise statements.
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When two goods have negative cross elasticities of demand and positive income elasticities, they are: a. Normal and substitutes
b. Normal and complements. c. Inferior and substitutes. d. Inferior and complements.
In relation to prices that would prevail in an uncontrolled market, prices charged by a black market are usually
a. lower, since it is hard for the sellers to locate buyers. b. lower, since it is hard for the buyers to locate sellers. c. higher, since black marketers expect compensation for the risk of being caught. d. higher, since most people enjoy goods more if they are illegal.