A packaged food company is looking at conducting enter the Canadian marketplace with its new line of frozen healthy after-school snacks. Before launching the product they want to determine what the best pricing strategy will be with their target market without the incurring the time or cost of a census. The research firm they hired suggested they subdivide the Canadian population into geographic areas. Given the diversity that exists across Canada, they suggested that they then select a random sample of the areas to ensure a representative sample. What form of sampling was the firm recommending?
A) eeographic sampling
B) random area sampling
C) two-step area sampling
D) stratified sampling
E) stratified random sampling

Question

Quizplus · Accepted Answer

The research firm recommended a two-step area sampling method, which involves subdividing the population into geographic areas and then selecting a random sample of those areas. This method is efficient and cost-effective since it avoids the need for a census and ensures a representative sample by randomly selecting areas. It is a form of cluster sampling, which is commonly used in market research studies. Neither option A nor option B accurately describe the method recommended. Stratified sampling and stratified random sampling involve dividing the population into subgroups, which is not what the research firm suggested.

A Packaged Food Company Is Looking at Conducting Enter the Canadian