New Enroll here to Join NaBFID Analyst Into Class on May 6

    Question

    Why is sampling an essential method in data analysis,

    especially when dealing with large datasets?
    A It ensures that data collection is error-free. Correct Answer Incorrect Answer
    B It simplifies the data collection process by eliminating redundant data. Correct Answer Incorrect Answer
    C It provides more accurate results without the need to analyze the entire dataset. Correct Answer Incorrect Answer
    D It reduces the cost of data collection by collecting data from only a portion of the population. Correct Answer Incorrect Answer
    E It eliminates the need for complex statistical models. Correct Answer Incorrect Answer

    Solution

    Sampling is a crucial method used in data analysis because it allows analysts to infer characteristics of a larger population without the need for examining every individual data point, which would be time-consuming and expensive. By selecting a representative subset of the population, it is possible to obtain insights with a reduced cost and effort while maintaining the accuracy of the analysis. Sampling also enables quicker data processing and makes it feasible to handle large datasets that would otherwise be computationally expensive or impractical to analyze entirely. Proper sampling methods, such as simple random sampling or stratified sampling, ensure that the sample is representative, reducing the risk of bias. Why Other Options Are Incorrect: • A: While sampling may reduce errors, it does not guarantee an error-free data collection process. • B: Sampling does not eliminate redundancy but rather focuses on selecting a representative subset. • C: Sampling helps in approximating the population characteristics, but it may introduce some error, so it does not guarantee more accurate results. • E: Sampling still often requires complex statistical models to ensure that the sample is representative and that the analysis is valid.

    Practice Next