Question

The Acme Manufacturing Company (500 employees strong) is being audited for proper procurement practices regarding the raw material it buys. Acme had $10M in sales last year, and spent $5M on raw material. The auditors found a cabinet filled with files, with each procurement having its own file (there are 900 files.) They decide to select a sample of 150 files, using Systematic Random Sampling. What is the value of k?

	A.	150
	B.	2
	C.	3
	D.	6

Answer 1

Answer

we know that for systematic sampling, we can express total number of data items as

N = n*k

where N = 900 and n = 150

setting the values, we get

900 = 150k

dividing by 150 on both sides, we get

k = 900/150

= 6

so, option D is correct