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 is a type of sampling method in which each item in the population is considered as a sampling unit, and the sample is selected on the basis of the dollar amount of each sampling unit. In this method, the larger the dollar amount of an item, the greater the likelihood of including it in the sample. Therefore, stratification is unnecessary because the sampling units are already sorted based on their dollar values.

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