Reading #10: Sampling and Estimating

Question 1

define cross-sectional data

Answer 1

“Data on some characteristics of companies at a SINGLE POINT IN TIME”

Question 2

define parameter

Answer 2

“quantity computed from or used to describe a population of data”

Question 3

define systematic sample

Answer 3

selecting a particular number at random - i.e. every Nth number in a population

Question 4

define sample error

Answer 4

difference between observed value and value it is intended to be

Question 5

define stratified random sampling

Answer 5

population broken down into subpopulations based on one or more criteria

Question 6

define time-series data

Answer 6

sequence of returns collected at evenly spaced time

Question 7

define longitudinal data

Answer 7

reviewing characteristics of one sample, ex. one companies, reviewing fin. ratios over period of 5 years

Question 8

define panel data

Answer 8

one characteristic, many samples over time period. i.e. reviewing inflation for many euro countries over 5 years

Question 9

what is most likely to increase the confidence interval?

Answer 9

increase in reliability factor

Question 10

what decreases confidence interval?

Answer 10

sampling size and degrees of freedom