Financial analyst Larry Potts needs a sample of 100 securities listed on either the New York Stock Exchange (NYSE)or the American Stock Exchange (AMEX). According to the Wall Street Journal's "Stock Market Data Bank," 2,531 NYSE securities and AMEX 746 securities were traded on the previous business day. Larry directs his staff to randomly select 77 NYSE and 23 AMEX securities. His sample is a ____________.
A) disproportionate systematic sample
B) disproportionate stratified sample
C) proportionate stratified sample
D) proportionate systematic sample
E) proportionate cluster sampling

Question

Quizplus · Accepted Answer

Larry's sample is proportionate because he has determined the number of securities to select from each exchange based on the proportion of securities traded on each exchange. Additionally, his sample is stratified because he has separated the population into non-overlapping subgroups (NYSE and AMEX) and selected a sample from each subgroup.

Financial Analyst Larry Potts Needs a Sample of 100 Securities