ExpertMedium2 marksMultiple Choice
ACCA · Question 03 · Data analysis and statistical techniques
A public utility company wants to survey its customers regarding a new pricing structure. The customer base is divided into three distinct income brackets: Low, Medium, and High. The company wants to ensure that the sample reflects the exact proportion of each income bracket in the total customer base, and then selects customers randomly within those brackets.
Which sampling method is being used?
A public utility company wants to survey its customers regarding a new pricing structure. The customer base is divided into three distinct income brackets: Low, Medium, and High. The company wants to ensure that the sample reflects the exact proportion of each income bracket in the total customer base, and then selects customers randomly within those brackets.
Which sampling method is being used?
Answer options:
A.
Quota sampling
B.
Cluster sampling
C.
Stratified sampling
D.
Systematic sampling
How to approach this question
Look for the keywords: divided into distinct groups (strata), proportional representation, and random selection within those groups.
Full Answer
C.Stratified sampling✓ Correct
Stratified sampling divides the population into mutually exclusive subgroups (strata) and then takes a random sample from each, often proportionally. It differs from quota sampling because the final selection is random.
Common mistakes
Confusing stratified sampling with quota sampling. Quota sampling does not use random selection for the final subjects.
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