Author Question: How does the sample size affect the validity of an empirical argument? When is it acceptable to use ... (Read 63 times)

kamilo84 · **on:** Jun 29, 2018

How does the sample size affect the validity of an empirical argument? When is it acceptable to use only one example to disprove a statement?

What will be an ideal response?

Question 2

In Thailand in the late 1990s, there was pressure for the value of the baht to decline as foreign investors began to

A) increase their investments in Thailand and exchanged their dollars for baht.
B) increase their investments in Thailand and exchanged their baht for dollars.
C) sell off investments they had made in Thailand and traded in their baht for dollars.
D) sell off investments they had made in Thailand and traded in their dollars for baht.

Heffejeff · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

The size of the sample used to test the argument can affect the results. A small sample may bias the results of a study. A key strength of economic analysis is the amount of data used. Using a large number of observations strengthens the force of an empirical argument. For example, if you collect information on consumption from 20,000 people as opposed to 20 people, you are likely to get a more representative result. A single example can be used to contradict a statement. For example, a single black swan can disprove the statement that all swans are white.

Answer to Question 2

C