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Stratification and Cluster Sampling

The document discusses statistical sampling methods for audits, including stratified random sampling and cluster sampling. Stratified random sampling partitions a population into homogeneous subgroups (strata) and randomly samples from each. Cluster sampling first divides a homogeneous population into mutually exclusive subgroups, then randomly samples clusters and includes either all or a probabilistic sample of units within selected clusters. Stratified sampling aims to increase precision without increasing costs, while cluster sampling is operationally convenient and can reduce costs.

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kunal
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80 views6 pages

Stratification and Cluster Sampling

The document discusses statistical sampling methods for audits, including stratified random sampling and cluster sampling. Stratified random sampling partitions a population into homogeneous subgroups (strata) and randomly samples from each. Cluster sampling first divides a homogeneous population into mutually exclusive subgroups, then randomly samples clusters and includes either all or a probabilistic sample of units within selected clusters. Stratified sampling aims to increase precision without increasing costs, while cluster sampling is operationally convenient and can reduce costs.

Uploaded by

kunal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Statistical sampling in Audit for the NSO

Stratification
&
Cluster Sampling
Comptroller & Auditor General Of India 1
Statistical sampling in Audit for the NSO

Stratified Random Sampling


 Population is partitioned into smaller sub-
population ,called strata.
 These strata should be mutually exclusive and
collectively exhaustive & homogeneous according
to some characteristics.
 Then a sample of ni = n(Ni/N) will be chosen at
random from ith strata. I = 1,2,3,….k,Where k is
the no. of strata.(Proportional allocation)
 This is used to increase precision without
increasing cost.
Comptroller & Auditor General Of India 2
Statistical sampling in Audit for the NSO

Optimum allocation in strata

( N i . SDi ) ( N i . SDi )
ni 
( N .SE x / Z r )   N i . SDi
2 2


x

Where, SDi = Standard Deviation of the ith


stratum.
Ni = No. of items /transactions in ith
stratum .
SEx = Acceptable margin of error for mean.
Zr = Standard Normal value for the desired
confidence level.
ni = optimum sample size of ith strata.
Comptroller & Auditor General Of India 3
Statistical sampling in Audit for the NSO

Cluster Sampling
 It is used whenever the population is
homogeneous but can be partitioned & for
practical convenience
 The target population is first divided into
mutually exclusive and collectively
exhaustive subpopulations.
 Then a random sample of cluster is selected
by SRS.Each selected cluster is either all the
units are included or a sample of elements is
drawn probabilistically.
Comptroller & Auditor General Of India 4
Statistical sampling in Audit for the NSO

Stratified Vs. Cluster Sampling

 In cluster sampling only a  In stratified sampling all


cluster is chosen the strata are chosen for
 Elements within a cluster further sampling.
should be as  Elements within a strata
heterogeneous as possible should be as
 It is operationally homogeneous as possible.
convenient and possible  It increase the precision
reduction of costs of the estimates without
increasing costs

Comptroller & Auditor General Of India 5


Statistical sampling in Audit for the NSO

Comptroller & Auditor General Of India 6

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