Financial analyst Larry Potts needs a sample of 100 securities listed on the New York Stock Exchange.The current issue of the Wall Street Journal has an alphabetical list of the 2,531 securities traded on the previous business day.Larry uses a table of random numbers to select 100 numbers between 1 and 2,531.His sample is a ____________.
A)quota sample
B)simple random sample
C)systematic sample
D)stratified sample
E)cluster sample

Question

Quizplus · Accepted Answer

Larry's method of using a table of random numbers to select securities from a list ensures that every security has an equal chance of being selected, which is the definition of a simple random sample.

Financial Analyst Larry Potts Needs a Sample of 100 Securities