ACCA Applied Knowledge · Management Accounting · Sampling methods
A company has 80 branches grouped into 10 regions. To save travelling costs, management randomly selects 3 regions and then examines all branches within those regions. Which sampling method is this?
This is cluster sampling. The population is divided into groups (regions), some groups are chosen at random, and all branches within them are examined. This lowers travel cost, unlike stratified sampling, which draws items from every group.
- ACluster samplingCorrect
- BStratified sampling
- CSystematic sampling
- DQuota sampling
Explanation
Cluster sampling randomly selects whole groups (regions) and then studies every item within the chosen groups, reducing travel costs. Stratified sampling would take items from every group, which does not happen here.
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