For a large population of cash disbursement transactions, Smith, CPA is testing controls by using attribute sampling techniques. Anticipating an expected deviation rate of 3 percent, Smith found from a table that the required sample size is 400 with a tolerable deviation rate of 5 percent and a desired confidence level of 95 percent. If Smith anticipated an expected deviation rate of only 2 percent but wanted to maintain the same tolerable deviation rate and confidence level, the sample size would be closest to:
A. 800.
B. 533.
C. 200.
D. 400.
Answer: C
You might also like to view...
An $80,000 bond issue priced at 97-3/4 is sold for $78,200
Indicate whether the statement is true or false
It takes a service rep an average of two minutes to take a customer's information. Over the course of a work week, the rep handles 160 calls a day during her eight hour shift. What is the service rep's capacity cushion?
A) 20% B) 33% C) 50% D) 67%
Unlike the situation with exchange rate risk, there is no uncertainty on the part of management for shareholder preferences regarding interest rate risk
Shareholders prefer that managers hedge interest rate risk rather than having shareholders diversify away such risk through portfolio diversification. Indicate whether the statement is true or false.
Identify the six major tasks of knowledge management
What will be an ideal response?