An auditor is using the probability proportional to size selection method. Using this method, the chance of selecting a $100 account balance compared to selecting a $500 account balance is:
A) 50 per cent.
B) 20 per cent.
C) less but not determinable without knowing the dollar amount of the population.
D) greater but not determinable without knowing the dollar amount of the population.

Question

Quizplus · Accepted Answer

Probability proportional to size selection method means that the probability of selecting an account is proportional to its dollar amount. Therefore, the chance of selecting a $100 account compared to a $500 account would be 100/500 or 1/5 or 20%.

An Auditor Is Using the Probability Proportional to Size Selection