Question

suppose a research organization conducts of annual expenditures. The sampling bias of one sort or another (non-response bias, evasion, etc.) in the sample mean is $80. The sample size is large enough to reduce the standard deviation (standard error) of the sample mean to $80 too. To improve accuracy, they double the sample size. This will reduce the MSE to what fraction of its present value?

a) to three quarters as much

b) to half as much

c) to one quarter as much

d) does not reduce it at all

Answer 1

option D is correct

d) does not reduce it at all

(since it is a measure of pooled variance which remains same)