Question

Chris York, CPA, is considering the use of probability-proportional-to-size sampling in examining the sales transactions and accounts receivable of Carter Wholesale Company.
a. How does the definition of the items in an accounts receivable population vary between probability-proportional-to-size sampling and mean-per-unit sampling?
b. Should a population of accounts receivable be stratified by dollar value before applying probability-proportional-to-size sampling procedures? Discuss.



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  • CreatedOctober 25, 2014
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