The Differences Between a Cluster Sample and a Stratified Sample

question 58

Multiple Choice

The differences between a cluster sample and a stratified sample are in a

• A) cluster sample, the parent population is divided into mutually exclusive and exhaustive subsets.
• B) stratified sample, the parent population is divided into mutually exclusive and exhaustive subsets.
• C) stratified sample, a simple random sample of elements is chosen independently from each group or subset, while in a cluster sample, a random sample of the subsets is selected.
• D) cluster sample, a simple random sample of elements is chosen independently from each group or subset, while in a stratified sample, a random sample of the subsets is selected.
• E) None of the above.

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Definitions:

Internal Rate of Return (IRR)

The interest rate that results in a net present value of zero for all cash flows associated with a specific project.

Net Present Value (NPV)

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time. It is used to assess the profitability of an investment.

Weighted Average Cost of Capital (WACC)

This metric calculates a firm's cost of capital, considering the proportionate costs of each component of the capital structure.

Internal Rate of Return (IRR)

The discount rate at which the net present value of all cash flows (positive and negative) from a project or investment equals zero.