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ACCA Applied Knowledge · Management Accounting · Sampling methods

Which of the following is an advantage of cluster sampling over simple random sampling when a population is spread across many towns?

Cluster sampling lowers cost because data collection is confined to a few randomly selected areas, such as particular towns, reducing travel and administration. The drawback is that it usually has higher sampling error than simple random sampling and leaves unselected clusters unrepresented.

  1. AIt gives lower sampling error for the same sample size
  2. BIt lowers cost by restricting data collection to a few selected areasCorrect
  3. CIt does not require any random selection
  4. DIt ensures all towns are represented in the sample

Explanation

Cluster sampling randomly selects a few groups (such as towns) and samples within them, cutting travel and administration costs. The trade-off is usually higher sampling error, and some clusters are not represented at all. Selection of clusters is still random.

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