Why can estimating the shape of the distribution of a variable like wealth involve significant sampling error?
A) Most samples will select too few rich households.
B) Oversampling in the upper tail is unreliable.
C) Most samples will select too few poor households.
D) Oversampling in the bottom tail is unreliable
E) Sampling is generally not effective for highly skewed variables.

Question

Quizplus · Accepted Answer

Wealth distribution is highly skewed, with a small number of households holding a large portion of wealth. Most samples tend to underrepresent these rich households, leading to significant sampling error.

Why Can Estimating the Shape of the Distribution of a Variable