CFA Practice Question

CFA Practice Question

Consider the following statements:

I. If cost is not an important issue, one should always opt for a census.
II. The information obtained from any sample is always representative of the population.
III. Not all individuals in the final sample are part of the population.

Which of the following statements is true?
A. I is true and III is false.
B. II is true.
C. None of the statements is true.
Explanation: Regardless of cost, a census may be too time consuming to be performed. Depending on the size of the sample and how it is obtained, the information in the sample may or may not be representative of the population. All individuals in the sample must be in the population.

User Contributed Comments 7

User Comment
fanfare time is also a cost
synner time is part of cost
Spain81 cost does not refer to time in this scenario but to monetary value. If cost were meant to imply time I'm sure they would have mentioned that.
Rguerra tricky, tricky, tricky...
Mathieu Don't forget to consider the case where 'observation' destroy the subject. i.e. test every lightbulb to know their average life...
dlukas Sometimes it's also logisically impossible--i.e., checking every ant in South America to test the hypothesis that # of legs = 6.
Shcote "Time is money" - Benjamin Franklin
You need to log in first to add your comment.