CFA Practice Question

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CFA Practice Question

Which of the following statements is (are) incorrect?

I. The mean of the sampling distribution is always equal to the mean of the population.
II. The sum of the squared sampling errors is always 0.0.
III. Given any sample, the variance of the sample mean is always less than the variance of the population.
IV. Sampling means are always random variables.
Correct Answer: II only

The statement that the sum of the squared sampling errors is always 0.0 is incorrect; the sum of the squared sampling errors is positive and the sum of the sampling errors is always 0.0.

User Contributed Comments 14

User Comment
Nikita How can you say the first statement is correct?
kamin bcz sampling selected from all population
cp24 If it is correct, then why is there such a thing as sampling error for means?
thinkit It is correct. The means are equal, although it could be different every time you get a sample
thekapila Guys it is correct, It talks about the mean of the sampling distribution and not the mean of sample.
Mean of distribution is = population mean
bobert There is a sampling error for means for individual samples compared to the population.
kamil77 Why is the third one correct?
Yurik74 kamil77 - my guess is that's cause we have less members in any given sample than in total population.
Sophorior for 3): check the central limit theorem
cleopatraliao @Yurik74 ur's becuz the central limit theorem states that the variance of the sample mean=variance of the population/n, where n is the sample size. that's why III is correct:)
EminYus i don't even remember the central limit theorem at this point..i'm trying to get through the material before a massive review
johntan1979 n-1
gill15 has nothing to do with n -'re confusing the stats. standard deviation of the MEAN = Std deviation of pop / root n

then just think of it mathematically.
pranubal what about the balance 3 answers, Is it all right
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