Question

To use stratified variables sampling to evaluate a large, heterogeneous inventory, an appropriate criterion for classifying inventory items into strata is

A. Turnover volume.
B. Storage locations.
C. Monetary values.
D. Number of items.

Answer 1

The appropriate criterion for using stratified sampling in evaluating a large, heterogeneous inventory is based on monetary values, as it allows for creating meaningful and economically significant strata.

Step-by-step explanation:

To use stratified sampling to evaluate a large, heterogeneous inventory, the appropriate criterion for classifying inventory items into strata is monetary values. In stratified sampling, the population is divided into homogenous subgroups, or strata, and samples are drawn from each stratum. Monetary values act as a practical basis for creating strata because they capture the economic significance of different items in the inventory, allowing for a more focused and relevant analysis of inventory data. This is particularly important in inventories where item values can vary significantly, and high-value items might need more attention in the sampling process.