Evaluate each of the following conclusions for correctness if an auditor selected a random sample of 100
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Evaluate each of the following conclusions for correctness if an auditor selected a random sample of 100 items from a population of 2,000 and, based upon accurate statistical calculations, determined that the confidence interval was \($4,200\) \($1,500\) at the 90% confidence level:
a. The confidence limits are between \($2,700\) and \($5,700\) at a 90% confidence level.
b. There is a 5% statistical risk that the true population value is more than \($5,700.\)
c. If the auditor took a large number of additional samples, each with a sample size of 100 items, the point estimate would fall between \($2,700\) and \($5,700\) approximately 90% of the time.
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Related Book For
Applications Of Statistical Sampling To Auditing
ISBN: 9780130391568
1st Edition
Authors: Alvin A. Arens, James K. Loebbecke
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