DATA ANALY ACCT + CONNECT LL
1st Edition
ISBN: 9781266167867
Author: RICHARDSON
Publisher: MCG/CREATE
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Question
Chapter 6, Problem 2MCQ
To determine
Determine the sampling interval if we are using a manual approach to monetary unit sampling for a book value of $2,000,000 and a
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Students have asked these similar questions
Consider a population proportion p = 0.20.
a. What are the expected value and the standard error for the sampling distribution of the sample proportion with n = 20 and n = 58?
Note: Round the standard error to 4 decimal places.
Answer is complete and correct.
n
Expected value
Standard error
20
58
0.20
0.20
0.0894
0.0525
b. Can you conclude that the sampling distribution of the sample proportion is approximately normally distributed for both sample
sizes?
Yes, the sampling distribution of the sample proportion is normally distributed for both sample sizes.
No, the sampling distribution of the sample proportion is not normally distributed for either sample size.
No, only the sample proportion with n = 20 will have a normal distribution.
No, only the sample proportion with n = 58 will have a normal distribution.
c. If the sampling distribution of the sample proportion is normally distributed with n = 20, then calculate the probability that the
sample proportion is between 0.18 and 0.20.…
1. Which of the following would be designed to estimate a numerical measurement of a population, such as monetary value?*
A. Sampling for variables
B. Sampling for attributes
C. Sequential sampling
D. Discovery sampling
E. None of them
(2 points) Suppose that we are to conduct the following hypothesis test:
Ho p
H₁
==
1050
1050
στ
==
Suppose that you also know that σ = 250, n = 95, 1090, and take a = 0.1. Draw the sampling distribution, and use it to
determine each of the following:
A. The value of the standardized test statistic:
Note: For the next part, your answer should use interval notation. An answer of the form (-00, a) is expressed (-infty, a), an answer of
the form (b, x) is expressed (b, infty), and an answer of the form (-00, a) U (b, c) is expressed (-infty, a)U(b, infty).
B. The rejection region for the standardized test statistic:
C. The p-value is
D. Your decision for the hypothesis test:
A. Do Not Reject H₁.
B. Do Not Reject Ho-
C. Reject Ho
D. Reject H₁.
Knowledge Booster
Similar questions
- S1: Mean per unit estimation is a classical variable sampling technique that projects the sample average to the total population by multiplying the sample average by the number of items in the population. S2: The more the auditor is relying on other substantive procedures to reduce to an acceptable level the detection risk regarding a particular population, the less assurance the auditor will require from sampling, and the smaller the sample size can be. a. BOTH STATEMENTS ARE TRUE b. BOTH STATEMENTS ARE FALSE c. ONLY S1 IS TRUE d. ONLY S2 IS TRUEarrow_forwardCalculate the projected misstatement in a population using ratio projection. Tolerable Misstatement $20,000 Materiality $50,000 Sample size $ 6,024 Population size $ 547,021 Sample misstatement $ 174 Sample item number 1,365 Population item number 90,893arrow_forwardYou may need to use the appropriate appendix table or technology to answer this question. A population proportion is 0.60. A sample of size 300 will be taken and the sample proportion p will be used to estimate the population proportion. (Round your answers to four decimal places.) (a) What is the probability that the sample proportion will be within ±0.03 of the population proportion? (b) What is the probability that the sample proportion will be within ±0.05 of the population proportion?arrow_forward
- In a difference estimation plan for a population of 1,500 items, an auditor found total recorded and audited value for a sample of 100 items to be P120,000 and P126,000, respectively. What is the total projected monetary difference for the population? * a.6,000 b. 90,000 c. 126,000arrow_forwardSample Size Relationships: Monetary Unit Sampling. For each of the following cases, provide the missing information. Recorded balance $1,500,000 $190,000 (C) Sample size 115 (B) 124 Sampling interval (A) $4,222 $18,000arrow_forwardFind the standard deviation for the given sample data. Round your answer to one more decimal place than is present in the original data. 18 18 14 11 8 8 10 17 12arrow_forward
- Which of the following statements is not true if the precision interval for a sampling risk of 10 percent ranges from 60 to 70?a. A 10 percent probability exists that the true population value is less than 60 or more than 70.b. A 90 percent probability exists that the true population value is less than 60 or more than 70.c. The reliability is 90 percent.d. The precision is 5.arrow_forward1arrow_forwardIn calculating the projected misstatement in monetary unit sampling, accounts with a book value larger than the sampling interval are extended to the projected misstatement at their: Misstatement amount. Actual book value. Tainting percentage times the sampling interval. Tainting percentage times their book value.arrow_forward
- Other factors equal when planning a monetary unit sample, which of the following is true regarding the maximum tolerable misstatement (M)? a. M is based on the sample results. b. the larger M is, the lower the confidence. c. the larger M is, the smaller the sample. d. the larger the expected misstatement, the smaller M is.arrow_forwardWhen using monetary unit sampling, a population is accepted as being materially correct when the: Tolerable misstatement is greater than the upper limit on misstatement. Incremental allowance is less than the upper limit on misstatement. Projected misstatement is less than the upper limit on misstatement. Basic precision is greater than the projected misstatement.arrow_forwardConsider a sample with data values of 10, 20, 12, 17, and 16. a. Compute the mean and median. b. Consider a sample with data values 10, 20, 12, 17, 16, and 12. How would you expect the mean and median for these sample data to compare to the mean and median for part a (higher, lower, or the same)? Compute the mean and median for the sample data 10, 20, 12, 17, 16, and 12.arrow_forward
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