ACCA Applied Knowledge · Management Accounting · Sampling methods
A company wants to survey customers from a complete list of 5,000 account holders. It selects every 50th name from the list after choosing a random starting point between 1 and 50. Which of the following is a recognised disadvantage of this method?
The disadvantage is that systematic sampling can give a biased sample if the list has a repeating pattern that coincides with the sampling interval. The method needs a sampling frame, which exists here, and it does not require strata or clusters.
- AIt cannot be used when a sampling frame exists
- BIt may produce a biased sample if the list has a repeating pattern matching the intervalCorrect
- CIt requires the population to be divided into strata first
- DIt always selects clusters of neighbouring items
Explanation
Systematic sampling is simple and spreads the sample across the list, but if the list has a cyclical pattern that coincides with the sampling interval, the sample can be biased. It needs a sampling frame, which exists here, and it does not need strata or clusters.
Did you get it right without looking?
One question tells you little. A timed set on Sampling methods shows your real accuracy, how long you take and where you lose marks.
More Sampling methods questions
- A factory employs 600 staff: 300 machine operators, 200 assemblers and 100 supervisors. A stratified random sample of 60 employees is to be …
- A firm has 10,000 employees: 8,000 in production and 2,000 in administration. It wants views on a new bonus scheme from both groups. Which i…
- A market researcher wants views from exactly 50 customers and is told to interview 20 men and 30 women, choosing whichever people are most e…
- An auditor of a management information system wants to test the opinions of users. She selects a few users she considers to be typical and k…
- A firm wants to estimate the average time taken to process all invoices received in a year. The sampling frame used is the list of invoices …
- A population of 1,200 invoices is to be sampled using systematic sampling. A sample of 40 invoices is required and the first invoice is rand…