Question

One of the benefits of Data Analytics is the ability to see and test the full population. In that case, why is sampling (even monetary sampling) still used, and how is it useful?

Answer 1

Sampling is a tool that is used to indicate how much data to collect and how often it should be collected. This tool defines the samples to take in order to quantify a system, process, issue, or problem. The sample, the slice of bread, is a subset or a part of the population

Monetary-unit sampling (MUS) is a method of statistical sampling used to assess the amount of monetary misstatement that may exist in an account balance. The method, also known as dollar-unit sampling or probability-proportional-to-size sampling, has been used for many years and is widely accepted among auditors..

Sampling is done because you usually cannot gather data from the entire population. Even in relatively small populations, the data may be needed urgently, and including everyone in the population in your data collection may take too long.

Sampling is a statistical procedure that is concerned with the selection of the individual observation; it helps us to make statistical inferences about the population. In sampling, we assume that samples are drawn from the population and sample means and population means are equal.

Advantages of sampling:- 1.Low cost of sampling 2.Less time consuming in sampling 3.Scope of sampling is high 4. Accuracy of data is high.