Question: Explain how the probability of selecting an item is proportional to its size in PPS sampling.

Explain how the probability of selecting an item is proportional to its size in PPS sampling.

Step by Step Solution

★★★★★

3.32 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

PPS sample selection is based on random dollars or a systematic process wit... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

222-B-A-A-B-R (441).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Q:

Explain how the probability distribution of a financial institution's returns is affected when it uses interest rate futures to hedge. What does this imply about its risk?

Q:

Answer each of the following. a. Find the probability of selecting the five winning numbers from 1, 2, ... , 31. b. The Wisconsin Badger 5 lottery is won by selecting the correct five numbers from 1,...

Q:

Find the probability of selecting someone who got a result that is a false positive. Who would suffer from a false positive result? Why?

Q:

Assume that you are preparing to confirm accounts receivable at December 31, 2022, which is one month prior to the fiscal year-end of January 31, 2023. The book value of gross accounts receivable is...

Q:

Part 5 and 6 are cut off they are as followed: Part 5. Compute the upper misstatement limit (UML) for the sample you selected. Follow the procedures outlined in the chapter. You can use the...

Q:

Document your determination of sample size. Bob Downe is auditing Red Cedar Office Furniture (RCOF), a manufacturer of office furniture and custom cabinets. RCOF was founded 25 years ago by a...

Q:

Red Cedar Office Furniture Question C10.1 is based on the following case. The data file needed to complete this case is available in Wiley PLUS. Bob Downe is auditing Red Cedar Office Furniture...

Q:

Assume you are planning the continuation of accounts receivable. There are 3000 customer accounts with a total book value of 3,25 1,?68. Tolerable misstatement is set at $200,000, and expected...

Q:

Determine the objectives of the test. You are auditing both quantities and pricing of the final inventory accumulation. a. Explain the assertions that you are testing. b. Explain the evidence that...

Q:

You are planning the confirmation of accounts receivable. There are 2,000 customers with a total book value of $5,643,200.Tolerable misstatement is set at $175,000 and expected misstatement is...

Q:

The activities required to design a prototype of an experimental machine are listed in the following table, along with their immediate predecessors and estimated durations. (a) Develop a project...

Q:

The manager of a bookstore recorded the number of customers who arrive at a checkout counter every 5 minutes from which the following distribution was calculated. Calculate the mean and standard...

Q:

Ron Case, manied filing jointh, falled to complete and file Form W - 4 with his employed. The employer should: a . withhold federal income taxes as if Case were married filing jointhy and claimed no...

Q:

A 5.00-grain aspirin tablet has a mass of 320 mg. For how many kilometers would the energy equivalent of this mass power an automobile? Assume 12.75km/L and a heat of combustion of 3.65 x 107 J/L for...

Q:

A dam is inclined at an angle of 30 from the vertical and has the shape of an isosceles trapezoid 100 ft wide at the top and 50 ft wide at the bottom and with a slant height of 70 ft, find the...

Q:

Terminal alkynes react with Br2 and water to yield bromo ketones. For example: Propose a mechanism for the reaction. To what reaction of alkenes is the processanalogous? -CECH Br2, H20 CH2Br

Q:

Assuming blackbody behavior, determine the temperature of, and the energy emitted by, areas A1 in Example 12.1 and Problems 12.3, 12.5, and 12.14, as well as area Ah in Problem 12.12. Discuss.

Q:

Inductance of a Solenoid. A long, straight solenoid has N tums, uniform cross-sectional area A, and length I. Show that the inductance of this solenoid is given by the equation L = oAN2/l. Assume...

Q:

Who should be on the monthly assessment committee, and how much time can they spend discussing each business plan?

Q:

What is the effect on the nature, timing, and extent of substantive tests of accounts receivable when the risk of material misstatement is assessed as being low instead of high?

Q:

What is the effect on the nature, timing, and extent of substantive tests of accounts receivable when the risk of material misstatement is assessed as being low instead of high?

Q:

What are the advantages and disadvantages of performing direct tests of account balances prior to the balance sheet date?

Q:

UCC 1-304 states that every contract or duty within the Uniform Commercial Code imposes an obligation of good faith in its performance and enforcement. According to UCC 2-103(1)(b), good faith, for a...

Q:

Let M R = ( [ 1 , 1 , 1 , 1 ] , [ 0 , 1 , 1 , 1 ] , [ 0 , 0 , 1 , 1 ] , [ 0 , 0 , 0 , 1 ] ) . Determine if R is: ( a ) reflexive, ( b ) symmetric, ( c ) antisymmetric, ( d ) transitive. See the...

Q:

Using an appropriately designed and analyzed study, a researcher observes a p-value of 0.0816573. Consider the following propositions: PROPOSITION ONE: At the 5% significance level, the appropriate...