Stratification Is Often Advantageous Because _______

question 144

Multiple Choice

Stratification is often advantageous because _______.

• A)the combined sample size often will be significantly less than a single sample size based on a non-stratified population
• B)the combined sample size often will be significantly more than a single sample size based on a non-stratified population
• C)it is a cheaper approach and will usually result in lower audit fees for the client
• D)it is usually more expensive and will result in higher audit fees for the client

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Definitions:

Consumption

The employment of goods and services within home environments.

Income

Monetary payment received for work or through investments.

Interest Rate

The fraction of a loan that incurs interest costs for the borrower, usually described as an annual percentage rate.

Utility Function

A mathematical representation of how a consumer's satisfaction or preference for goods and services is dependent on their consumption levels.