Whenever a Statistical Method Is Used, a Decision Rule Determines

question 24

Multiple Choice

Whenever a statistical method is used, a decision rule determines whether the population is acceptable. The decision rule for monetary- unit sampling is 'Accept the conclusion that the book value is NOT misstated by a material amount if:

• A) both the understatement and overstatement tolerable misstatement amounts fall between the upper and lower misstatement bound.'
• B) both the lower and upper misstatement bound falls between the understatement and overstatement tolerable misstatement amounts.'
• C) the overstatement tolerable misstatement amount falls between the lower and upper misstatement bound.'
• D) the upper misstatement bound falls between the understatement and overstatement tolerable misstatement amounts.'

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