Probability-proportional-to-size (PPS) sampling should not be used when: A) the number of units in the population is unknown at the start of sampling. B) the variability of the population is unknown. C) book values for sampling units are not available. D) transactions and balances are tested for overstatement. E) testing plant asset additions.

Question

Quizplus · Accepted Answer

PPS sampling, also known as probability-proportional-to-size sampling, requires knowledge of the size measure (e.g., book values) for each sampling unit to determine its probability of selection. If book values for sampling units are not available, PPS sampling cannot be properly implemented.

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