Which One of the Following Statements Is NOT Correct

question 112

Multiple Choice

Which one of the following statements is NOT correct?

• A) It is acceptable for auditors to use nonstatistical sampling methods.
• B) An advantage of using statistical sampling is that the cost/benefit ratio is always positive.
• C) It is acceptable for auditors to use statistical sampling methods.
• D) The primary benefit of statistical sampling methods is the quantification of sampling risk.

Understand how correlation affects predictability between variables.

Recognize examples of correlations in real-world contexts.

Understand the importance of sample representativeness in research studies.

Learn the relationship between correlation strength and predictability.

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Definitions:

Uninsurable Risks

refers to risks that insurance companies are unwilling to cover due to their unpredictable or potentially catastrophic nature.

Entrepreneur

A person who organizes, operates, and assumes the risk for a business venture, often introducing new products, services, or business processes.

Short-Term Loans

Financial borrowing intended to be repaid within a short period, usually less than a year.