Rebecca collected data from a random sample of 1200 homeowners in her state asking whether or not they use electric heat. Based
on the results, she reports that 50% of the homeowners in the nation use electric heat. Why is this statistic misleading?a. The sample size is insufficient.b. The statistic contains a calculation error.c. The sample is biased.d. The data contains an outlier.
This is because the sample is taken on a single state, an Rebecca reports a statistic about the nation. Her data contains information only of her state. If she lives in a very cold state, there is probably more homeowners using electric heat than in a hot state.
“Principal” is a term that has several financial meanings. The most commonly used refers to the original sum of money borrowed in a loan or put into an investment.
