We wish to study the advertising expenditures for the 200 largest companies in Canada. Suppose the objective of the study is to determine whether firms with high returns on equity (a measure of profitability) spent more of each sales dollar on advertising than firms with a low return or deficit. To make sure that the sample is a fair representation of the 200 companies, the companies are grouped on percent return on equity What is this type of sampling called?
A) Simple random
B) Stratified random
C) Cluster
D) Systematic

Question

We wish to study the advertising expenditures for the 200 largest companies in Canada. Suppose the objective of the study is to determine whether firms with high returns on equity (a measure of profitability) spent more of each sales dollar on advertising than firms with a low return or deficit. To make sure that the sample is a fair representation of the 200 companies, the companies are grouped on percent return on equity  What is this type of sampling called?
A) Simple random 
B) Stratified random 
C) Cluster 
D) Systematic

Quizplus · Accepted Answer

This is an example of stratified random sampling, as the companies are being grouped into strata based on their percent return on equity in order to ensure a representative sample.

We Wish to Study the Advertising Expenditures for the 200