Select the best description (from choices a, b, c, or d) for the statistical terms (14): With

Question:

Select the best description (from choices

a, b,

c, or

d) for the statistical terms (1–4):

With statistical sampling one has to set the criteria within which the results should be evaluated and this falls under three basic parameters:

Statistical term: Description

(a,

b, c or d):

1. Error rate.

2. Confidence.

3. Precision.

4. Extrapolation.

Description:

a. This is the degree to which the results derived from the sample will follow the trend in the actual population.

b. This is the level of error that one may expect from the population being tested.

c. This is when results taken from a sample are grossed up and applied to the whole population.

d. This shows the margin within which the results can be quoted and defines the degree of accuracy that is required.

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The Internal Auditing Handbook

ISBN: 9780470518717

3rd Edition

Authors: K. H. Spencer Pickett

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