What is Cluster Sampling? In statistics, cluster sampling is a sampling method in which the entire population of the study is divided into externally, homogeneous but internally, heterogeneous groups called clusters. Essentially, each cluster is a mini-representation of the entire population. After identifying the clusters, certain clusters are chosen using simple random sampling while the…
What is Empirical Evidence? Empirical evidence is the information obtained through observation and documentation of certain behavior and patterns or through an experiment. Empirical evidence is a quintessential part of the scientific method of research that is applicable in many disciplines. In the scientific method, the pieces of empirical evidence are used to validate or…
What are Products and Services? A product is a tangible item put on the market for acquisition, attention, or consumption, while a service is an intangible item arising from the output of one or more individuals. Although it seems like the main distinction between the two concepts is based on their tangibility, that is not…
What is the Coefficient of Determination? The coefficient of determination (R² or r-squared) is a statistical measure in a regression model that determines the proportion of variance in the dependent variable that can be explained by the independent variable. In other words, the coefficient of determination tells one how well the data fits the model…
What is Nominal Gross Domestic Product (Nominal GDP)? Nominal Gross Domestic Product (Nominal GDP) is the total market value of all goods and services produced in a country’s economy over a given period. Unlike other GDP measurements, nominal GDP is not adjusted to account for price changes from inflation and deflation. It means that it…
What is a Manufacturer? A manufacturer is a person or company that produces finished goods from raw materials by using various tools, equipment, and processes, and then sells the goods to consumers, wholesalers, distributors, retailers, or to other manufacturers for the production of more complex goods. History of Manufacturing Manufacturers are considered a significant part…
What is an Annual Turnover? Annual turnover is a measurement to describe a fund’s annual trading activity. It is a percentage used to demonstrate how many holdings a mutual fund or exchange-traded funds (ETF) were replaced within the year. Essentially, the annual turnover will help to show the purchase or sale of securities within a…
What is an Amended Return? An amended return is filed with the tax authority to make corrections to a previous year’s tax return. The tax return’s amended version can increase tax benefits or tax liability, depending on the amendment. To file an amended return in the US, an individual must fill out a 1040X form,…
What is a Purchase Order? A purchase order is a commercial source document that is issued by a business’ purchasing department when placing an order with its vendors or suppliers. The document indicates the details on the items that are to be purchased, such as the types of goods, quantity, and price. In simple terms,…
