When using systematic selection procedures with monetary-unit sampling of accounts receivable, the interval is determined by:
A) dividing the sample size by the account with the largest dollar value.
B) consulting a random number table.
C) dividing the population size by the account receivable with the largest dollar value.
D) dividing the population size by the desired sample size.

Question

Quizplus · Accepted Answer

The interval in monetary-unit sampling is determined by dividing the total population value (size) by the desired number of sample items (sample size). This method ensures that each dollar has an equal chance of selection.

When Using Systematic Selection Procedures with Monetary-Unit Sampling of Accounts