Classifying Manufacturers by Sales Volume | CFA Level 1 Exam | Test Prep

Sampling Classification: Manufacturers by Sales Volume

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Question

Manufacturers were subdivided into groups by volume of sales. Those with more than $100 million in sales were classified as Class A large; those from $50 to

$100 million as Class A medium size; and those between $25 and $50 million, and so on. Samples were then selected from each of these groups. What is this type of sampling called?

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This is stratified random sampling. It is a method of selecting a random item from each section of the population. The randomness comes from the random selection from a particular section. Stratified refers to the division of the sections.