Financial analyst Larry Potts needs a sample of 100 securities listed on the Toronto Stock Exchange.The current issue of the Report on Business Magazine, has an alphabetical list of the 2,531 securities that are listed in the "Toronto Exchange Composite Transactions," an alphabetical listing of all securities traded on the previous business day.Larry uses a table of random numbers to select 100 numbers between 1 and 2,531.His sample is a ___.
A)quota sample
B)simple random sample
C)systematic sample
D)stratified sample
E)cluster sample

Question

Quizplus · Accepted Answer

Larry uses a table of random numbers to select securities from the alphabetical list of all securities traded on the previous business day. This is an example of simple random sampling, where each security has an equal chance of being selected.

Financial Analyst Larry Potts Needs a Sample of 100 Securities