An Advantage of Statistical Sampling Over Nonstatistical Sampling Methods Is

question 28

Multiple Choice

An advantage of statistical sampling over nonstatistical sampling methods is that statistical methods

• A) Afford more assurance than a nonstatistical sample of equal size.
• B) Provide an objective basis for quantitatively evaluating sampling risk.
• C) Can more easily convert the sample into a dual-purpose test useful for substantive procedures.
• D) Eliminate the need to use judgment in determining appropriate sample sizes.

---

Definitions:

Inventory Turnover Rate

A measure of how quickly a company sells and replaces its stock of goods within a given period, indicating the efficiency of its inventory management.

Opportunity Cost

The expense associated with foregoing the next most favorable option when a choice is made.

Restrictive Policy

Policies or conditions imposed by lending institutions or governments that limit certain activities or operations to reduce risk.

Just-in-time

A production strategy that aims to reduce in-process inventory and associated carrying costs by producing goods only as they are needed in the production process.