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What are the advantages and disadvantages of using systematic sampling?

What are the advantages and disadvantages of using systematic sampling?

A:As a statistical sampling method, systematic sampling is simpler and more straightforward than random sampling. It can also be more conducive to covering a wide study area. On the other hand, systematic sampling introduces certain arbitrary parameters in the data. This can cause over- or under-representation of particular patterns. Examining Systematic Sampling In a systematic […]

What causes politicians or governments to begin "pork barrel" spending?

What causes politicians or governments to begin "pork barrel" spending?

A:Pork barrel spending occurs when the government taxes the general population to hand out concentrated benefits to special interest groups. Economists and political scientists assert that pork barrel spending logically results from rent-seeking in large electoral democracies. The normal mechanism for distributing this so-called “pork” is to attach it as an earmark to other legislation. […]

What are some ways a company can improve on its Return on Capital Employed (ROCE)?

What are some ways a company can improve on its Return on Capital Employed (ROCE)?

A:Options available to a company seeking to improve on its return on capital employed (ROCE) ratio include reducing costs, increasing sales, and paying off debt or restructuring financing. ROCE is a metric that measures the profitability of a company. It helps analysts assess how efficiently a company employs its available capital. The ROCE ratio is […]

What is the difference between the standard error of means and standard deviation?

What is the difference between the standard error of means and standard deviation?

A:The standard deviation, or SD, measures the amount of variability or dispersion for a subject set of data from the mean, while the standard error of the mean, or SEM, measures how far the sample mean of the data is likely to be from the true population mean. The SEM is always smaller than the […]

How does the law of diminishing returns affect marginal revenue?

How does the law of diminishing returns affect marginal revenue?

A:The law of diminishing returns is better thought of as the law of increasing opportunity costs. The law states that—if other factors are fixed—there is an optimal level of input factors, after which marginal returns begin to decline. When applied to business, this means that a firm should only increase one factor of production until […]

What is Unlimited Liability?

What is Unlimited Liability?

Loading the player… Unlimited liability means that the owners of a business are liable for the entire amount of debt and obligations of that business.  Unlimited liability is most common in general partnerships and sole proprietorships.  It can cause personal hardship for business owners if their company is not able to pay its debt, because […]

Treasury Inflation-Protected Securities (TIPS)

Treasury Inflation-Protected Securities (TIPS)

Loading the player… Treasury inflation-protected securities, also known as TIPS, are treasury securities that make adjustments for inflation as reflected in the Consumer Price Index. TIPS are an effective way for fixed- income investors to eliminate inflation risk. TIPS have a fixed interest rate that is paid semi-annually.  The inflation adjustment is also made on […]

What's a Revolving Line of Credit?

What's a Revolving Line of Credit?

Loading the player… A revolving line of credit is an arrangement made between a company or an individual and a bank to borrow money on a short-term basis to meet temporary cash shortfalls.  Think of it as a sophisticated credit card. Banks that issue a revolving line of credit usually charge an initiation fee to […]

What is the Coupon?

What is the Coupon?

Loading the player… In the financial world, “coupon” represents the interest rate on a bond.  Typically the coupon is paid semi-annually.  Coupon is short for “coupon rate” or “coupon percentage rate.”  The use of the word coupon to describe the interest rate on a bond is derived from the fact that bonds used to be […]

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