Probability-proportional-to-size (PPS) sampling should not be used when: A) few or no misstatements are expected. B) any misstatements are expected to be overstatements. C) testing investment securities. D) performing inventory price tests when few differences are anticipated. E) there are some zero-balance items in the population.

Question

Quizplus · Accepted Answer

PPS sampling is not suitable for populations with zero-balance items because it selects samples based on size, and zero-balance items have no size to contribute to the selection probability.

Probability-Proportional-To-Size (PPS) Sampling Should Not Be Used When