Financial analyst Larry Potts needs a sample of 100 securities listed on the New York Stock Exchange. In the current issue of the Wall Street Journal,2,531 securities are listed in the "New York Exchange Composite Transactions," an alphabetical listing of all 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 uses a table of random numbers to select 100 numbers between 1 and 2,531, which means each security has an equal chance of being selected. This is a characteristic of a simple random sample.

Financial Analyst Larry Potts Needs a Sample of 100 Securities