In: Economics
True or False:
1) Non-response bias always causes downward because fewer people respond and hence we have less data.
2) A sample that is created by randomly selecting individuals from the population to participate in a survey is always representative of the population.
3) When the median is higher than the mean, the share of observations to the left of the mean is greater than the share of observations to the right.
Specifics:-
1) Non-response bias always causes downward because fewer people respond and hence we have less data.
Non responsive bias takes place, when in a sample survey, the number of respondents are adequate but they do not respond to the survey itself. This can happen because of a variety of reasons such as trust with the sample taker, lack of appropriate questions in the survey and others such as difficulty in filling the same.
Since the number of people responding to a survey are not adequate to represent the entire population it will always cause a downward.
Hence the statement is true
2) A sample that is created by randomly selecting individuals from the population to participate in a survey is always representative of the population.
When we randomly select people for any analysis, the problem of them being biased exists which can lead to issues in a survey. Not every person in a population has the same opinion. If the process of selecting a person is not done properly, it can lead to a situation in which the sample is not representative of the entire population hence this option is false.
For example:-
In a group of 100 People 5 people prefer non vegetarian food while 95 are vegetarian. In this case, if 3 people are selected who prefer non vegetarian it does not represent the interests of the entire group respectively.
3) When the median is higher than the mean, the share of observations to the left of the mean is greater than the share of observations to the right.
The median is usually higher than the mean, when observations which are relatively lower tend to be more in the sample set than those which are relatively higher. In such cases the central tendency of median which reflects the central value tends to be higher, whereas the average value i.e. mean tends to be lower.
Thus one can easily point out that the observations to the left of the mean which are smaller in numeric value tend to be more than the share of observations to the right.
Hence the option is true
Please feel free to ask your doubts in the comments section if any.