In probability-proportional-to-size (PPS) sampling, which of the following accounts would have the HIGHEST probability of being selected?

Answer options:

An account with a recorded balance of $10,000.

An account with a recorded balance of $100,000.

An account with a recorded balance of $0 (but should be $50,000).

An account with a recorded balance of $5,000.

How to approach this question

Understand PPS mechanics: Chance of selection is proportional to dollar size. Zero balances have no chance.

Full Answer

B.An account with a recorded balance of $100,000.✓ Correct

In PPS, every dollar is a sampling unit. An account with $100,000 contains 100,000 sampling units, giving it the highest probability of selection compared to smaller balances.

Common mistakes

Thinking PPS is good for finding understatements (zero balances) - it is not.

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