Monetary-unit sampling is said to eliminate the need to stratify the sample because:
A)sample items are selected in proportion to their dollar amount.
B)the risk of incorrect acceptance is inversely related to sample size.
C)tolerable misstatement is considered when determining sample size.
D)the upper limit on misstatements can be computed based on statistical principles.

Question

Quizplus · Accepted Answer

Monetary-unit sampling involves selecting sample items in proportion to their dollar amount, which automatically takes into account the stratification of the population by dollar value. This method is considered to be more efficient than stratified random sampling, which requires separate sampling for each stratum or subgroup.

Monetary-Unit Sampling Is Said to Eliminate the Need to Stratify