Question

The use of probability-proportional-to-size sampling is inefficient if

A. Bank accounts are being examined.
B. Each account is of equal importance.
C. The number of sampling units is large.
D. Statistical inferences are to be made.

Answer 1

The use of probability-proportional-to-size sampling is inefficient if each account is of equal importance (Option B).

Step-by-step explanation:

Probability-proportional-to-size (PPS) sampling is a method where the probability of selecting a unit is directly proportional to its size or value within the population. This method is particularly efficient when larger units contain more information and are more likely to be selected.

However, if each account is of equal importance (Option B), the benefits of PPS sampling are diminished because the proportional size does not contribute additional value to the sampling process. In such cases, simpler sampling methods may be more efficient. Options A, C, and D are not directly related to the inefficiency of PPS sampling.

Option B is the answer.