Alex collects data for the Australian Bureau of Statistics. His boss asks him to do a cost benefit analysis of collecting a random sample for a sample mean that is three times the size of the original sample. Which of the following is a truthful statement Alex could say to his boss?

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Alex collects data for the Australian Bureau of Statistics. His boss asks him to do a cost benefit
analysis of collecting a random sample for a sample mean that is three times the size of the original
sample. Which of the following is a truthful statement Alex could say to his boss?
O Increasing the sample size increases the volatility so it can't be worthwhile
O No matter what the cost, it is worthwhile getting extra data because it lowers the variance of the sample mean
O If enough data is collected, it will become clear that the original data (not the sample mean) is Normally
distributed
None of the answers are correct
Transcribed Image Text:Alex collects data for the Australian Bureau of Statistics. His boss asks him to do a cost benefit analysis of collecting a random sample for a sample mean that is three times the size of the original sample. Which of the following is a truthful statement Alex could say to his boss? O Increasing the sample size increases the volatility so it can't be worthwhile O No matter what the cost, it is worthwhile getting extra data because it lowers the variance of the sample mean O If enough data is collected, it will become clear that the original data (not the sample mean) is Normally distributed None of the answers are correct
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