Attribute Sampling

Categories: Metrics, Stocks, Investing

This process of determining how closely a specific rule or standard within the company is followed by taking a sample from the larger population is called attribute sampling.

Wendy’s claims to use "fresh, never frozen beef." Perhaps the CEO, who should have to be named Wendy, decides to determine how true that statement is company-wide. Knowing they can’t send an inspector to every single Wendy’s location, they instead take a sample of Wendy’s at random and determine the percentage of stores that never freeze their beef.



Find other enlightening terms in Shmoop Finance Genius Bar(f)