LR question. Sept.98 LRII. #24

[pjo]

Can someone please explain this answer to me. It's from the sept.98 test, LR section II. question 24. I know the answer is E. I put down C, FWIW. Anway, I just can't figure out why E is correct, I know it has something to do with sample size being smaller but I really just can't wrap my head around it. Thanks

[Shrimps]

Is this the "mathematical proposition" one?

(C) "if a proposition can be proven true by observation, then it can be known to be true" in no way violates or contradicts a statement like "a proposition that cannot be proven true by observation can still be known to be true through some other means" which would violate the claim.

(E), on the other hand, limits "knowing a proposition to be true" exclusively to "proving it true by observation"