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 randomly selects the 7th security as a starting point, and selects every 25th security thereafter (7, 32, 57, etc.).His sample is a ___.
A)quota sample
B)simple random sample
C)stratified sample
D)systematic sample
E)cluster sample

Question

Quizplus · Accepted Answer

Larry is using a systematic sampling method, where he selects every 25th security from the starting point of the 7th security. This is a type of non-random sampling method but is still considered a probability sampling method. Therefore, the correct choice is D, a systematic sample.

Financial Analyst Larry Potts Needs a Sample of 100 Securities