Which sampling technique can be used for the construction of Index numbers?
Options
ASystematic sampling
BQuota sampling
CCluster sampling
DRandom sampling
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Index NumbersPYQ Sept 25Question 4497 of 197
All Questions Correct Answer
✅ Option d — Random sampling
All Options:
- ASystematic sampling
- BQuota sampling
- CCluster sampling
- DRandom sampling
Detailed Solution & Explanation
Let us analyze the selection of items, prices, and outlets for constructing index numbers from first principles:
1. **Sampling in Index Numbers**: When constructing index numbers, we cannot collect data for every single commodity or from every retail outlet. Therefore, sampling is necessary to select representative items and outlets.
2. **Random Sampling**: Random sampling (probability sampling) is the standard and mathematically rigorous sampling technique that ensures every item in the population has a known, non-zero probability of selection. This eliminates personal bias and allows for statistical estimation of sampling errors.
3. **Other options**: Systematic sampling, quota sampling, and cluster sampling are either non-probability methods or less generalizable than random sampling for selecting a diverse set of consumption items and outlets.
Hence, **Option D** is the correct answer.
1. **Sampling in Index Numbers**: When constructing index numbers, we cannot collect data for every single commodity or from every retail outlet. Therefore, sampling is necessary to select representative items and outlets.
2. **Random Sampling**: Random sampling (probability sampling) is the standard and mathematically rigorous sampling technique that ensures every item in the population has a known, non-zero probability of selection. This eliminates personal bias and allows for statistical estimation of sampling errors.
3. **Other options**: Systematic sampling, quota sampling, and cluster sampling are either non-probability methods or less generalizable than random sampling for selecting a diverse set of consumption items and outlets.
Hence, **Option D** is the correct answer.
About This Chapter: Index Numbers
Paper
Paper 3: Quantitative Aptitude
Weightage
4-6 Marks
Key Topics
Construction of Index Numbers, Time Series
This chapter covers Construction of Index Numbers, Time Series and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.
View Official ICAI SyllabusExam Strategy Tip
This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.
Key Concepts to Understand
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More Questions from Index Numbers
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If , , and Paasche's Index Number = 150, then Fisher's Ideal Price Index Number is
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