Sampling and Nonsampling Risk. Arthur Castle is interested in identifying the averagenumber of family members living in each household in his neighborhood. He has heardabout sampling and thinks that it could help him identify this information. In considering theapplication of sampling to this particular situation, he considers the following characteristicsof his neighborhood:a. Many of his neighbors are dual-income career couples and are away from home in themornings and afternoons.b. His neighborhood has two distinct types of homes. The value of the homes in the more established section is in the $300,000 and above price range; most of the individuals have residedin this section for quite some time. The value of homes in the newer section is in the $150,000to $200,000 range, most of which have been built and occupied within the last two years.c. A small park has been built in the neighborhood. Because of safety considerations, manyfamilies with small children have chosen to live near the park.d. A wooded area backs up to one section of his neighborhood. Because of the privacyoffered by the wooded area, as well as the relative lack of traffic, older residents havechosen to live in this part of the neighborhood.e. Several families have frequent visitors to their homes, particularly on the weekends.Required:For each of these characteristics, indicate whether it has the potential to affect sampling risk,nonsampling risk, both sampling risk and nonsampling risk, or neither sampling risk nornonsampling risk.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Sampling and Nonsampling Risk. Arthur Castle is interested in identifying the average
number of family members living in each household in his neighborhood. He has heard
about sampling and thinks that it could help him identify this information. In considering the
application of sampling to this particular situation, he considers the following characteristics
of his neighborhood:
a. Many of his neighbors are dual-income career couples and are away from home in the
mornings and afternoons.
b. His neighborhood has two distinct types of homes. The value of the homes in the more established section is in the $300,000 and above price range; most of the individuals have resided
in this section for quite some time. The value of homes in the newer section is in the $150,000
to $200,000 range, most of which have been built and occupied within the last two years.
c. A small park has been built in the neighborhood. Because of safety considerations, many
families with small children have chosen to live near the park.
d. A wooded area backs up to one section of his neighborhood. Because of the privacy
offered by the wooded area, as well as the relative lack of traffic, older residents have
chosen to live in this part of the neighborhood.
e. Several families have frequent visitors to their homes, particularly on the weekends.
Required:
For each of these characteristics, indicate whether it has the potential to affect sampling risk,
nonsampling risk, both sampling risk and nonsampling risk, or neither sampling risk nor
nonsampling risk.

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