Which of the Following Is a Correct Statement About the Stratified

question 68

Multiple Choice

Which of the following is a correct statement about the stratified random sample?

• A) It is useful when the frame or population to be sampled is known to contain two or more mutually exclusive and clearly distinguishable subgroups or strata that differ greatly from one another with respect to some characteristic of interest.
• B) It is useful when the frame or population to be sampled is known to contain two or more mutually exclusive and clearly distinguishable subgroups or strata that are fairly homogeneous internally.
• C) It is chosen by taking separate (simple or systematic) random samples from every stratum, often in such a way that the sizes of the separate samples vary with the importance of the different strata.
• D) All of these are correct statements about this type of sample.
• E) None of these are correct statements about this type of sample.

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Definitions:

Accounting Estimates

Assumptions made about future financial transactions that impact the reporting of a company's financial statements, such as allowances for doubtful accounts.

Cumulative Adjustment

An accounting method used to make corrections to cumulative errors in financial statements of previous years.

Prior Period Adjustments

Corrections of errors in previously issued financial statements for periods that have already been reported.

Retained Earnings

The portion of a company's net income that is kept within the company rather than distributed to shareholders as dividends.