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ACCA Applied Knowledge · Management Accounting · Sampling methods

A survey of 200 customers uses quotas: 50% aged under 40 and 50% aged 40 or over. Interviewers reach the quotas, but they tend to approach customers who look friendly and approachable. Which statement is correct?

Quotas control the age mix, but interviewers still choose who to approach, so selection bias may remain. Because selection is non-random, sampling error cannot be quantified using probability theory. Meeting quotas neither makes the sample random nor eliminates bias.

  1. AQuotas control the age mix but interviewer selection bias may remain, and sampling error cannot be statistically quantifiedCorrect
  2. BThe quotas make the sample random, so sampling error can be calculated
  3. CBecause quotas are met, bias is eliminated
  4. DThe sample is cluster sampling because customers are grouped by age

Explanation

Quotas ensure the sample has the intended age proportions, but within each quota the interviewer chooses respondents, so bias can remain. Because selection is non-random, probability theory cannot be used to measure sampling error. Meeting quotas does not make selection random.

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