2025 CFA Level I Exam: CFA Exam Practice Question

CFA Exams
CFA Level I Exam
Topic 1. Quantitative Methods
Learning Module 7. Estimation and Inference
Subject 1. Sampling Methods

CFA Practice Question

There are 676 practice questions for this topic.

CFA Practice Question

Sampling that subdivides the population into subgroups with like characteristics and then samples a proportionate amount from each subgroup is called ______.

A. random
B. stratified
C. systematic

Correct Answer: B

User Contributed Comments 2

User	Comment
CFAonTheBrain	can someone please explain why?
UFCRP	The example in the notes here is a good one. A Bond Index will contain an overtly large number of different types of bonds ranging in difference in maturity, duration, quality, and callability, etc. Using each of these differences, you can box in bonds with similar criterea and then base your sample from the population of each box. Therefore, stratifying (a.k.a. arranging) the bonds allows you to take a sample from each to represent the majority of what is held in the index. You're basically picking from the mean of each bond category.

User

Comment

CFAonTheBrain

can someone please explain why?

UFCRP

The example in the notes here is a good one. A Bond Index will contain an overtly large number of different types of bonds ranging in difference in maturity, duration, quality, and callability, etc. Using each of these differences, you can box in bonds with similar criterea and then base your sample from the population of each box. Therefore, stratifying (a.k.a. arranging) the bonds allows you to take a sample from each to represent the majority of what is held in the index. You're basically picking from the mean of each bond category.

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