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Answer: Stratified random sampling.
**Explanation:** - **Option A (Cluster sampling)** is incorrect because, in cluster sampling, the population is divided into clusters, each of which is a mini-representation of the entire population. Certain clusters are then selected as a whole using simple random sampling. The described method does not qualify as cluster sampling because each sector is not a mini-representation of all public firms, and sectors are not chosen as a whole. - **Option B (Simple random sampling)** is incorrect because, in simple random sampling, firms would be randomly selected without prior grouping into sectors. Each firm would have an equal probability of being selected, which is not the case here. - **Option C (Stratified random sampling)** is correct because the population is divided into subpopulations (strata) based on sectors, and subsamples are drawn from each stratum in sizes proportional to their representation in the total population. This aligns with the definition of stratified random sampling.
Author: LeetQuiz Editorial Team
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Grouping all publicly traded US firms by sector and then randomly selecting subsamples of firms from each sector according to the sector's proportion in the total population is an example of:
A
Cluster sampling.
B
Simple random sampling.
C
Stratified random sampling.
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