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An auditor wanted to test credit approval on 1 0 , 0 0 0 sales invoices processed during the year. The tolerable rate of deviation

An auditor wanted to test credit approval on 10,000 sales invoices processed during the year. The tolerable rate
of deviation is 7%. The expected population deviation rate is 2.5%. A sample of 200 invoices was examined
and 7 of them were lacking approval. The auditor then determined that the upper limit rate of deviation to be
8%. The allowance for sampling risk was: (Note: You do not need the risk of over-reliance in order to solve this
problem)
5.5%
4.5%.
3.5%.
1%.
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