To obtain a frame of reference for assessing financial trends of a particular city,you decide to compare them with financial trends of other municipalities.Which approach will provide the most appropriate reference group for this purpose?
A)a statistical sample of all municipalities (cities,counties,villages,etc. )in the country
B)a statistical sample of all municipalities (cities,counties,villages,etc. )in the same state
C)a random sample of municipal governments,other than cities,in the same state
D)a sample of cities of roughly similar population size and that perform similar functions in the same state

Question

Quizplus · Accepted Answer

Choosing cities that are of roughly similar population size and that perform similar functions in the same state will provide a more comparable reference group. This ensures that the financial trends being compared are similar in terms of population and function, which will result in a more relevant comparison. A statistical sample of all municipalities in the country or state may not be as relevant as the trends may differ greatly due to varying factors such as economic development, demographics, and political climate. Similarly, using a random sample of municipal governments, other than cities, in the same state may not be directly comparable to the city being assessed.

To Obtain a Frame of Reference for Assessing Financial Trends