Of the Four Factors Which Determine the Initial Sample Size

question 82

Multiple Choice

Of the four factors which determine the initial sample size (population size, tolerable deviation rate, acceptable risk of over- reliance and expected population deviation rate) , which combination of two factors has the greatest effect on sample size?

• A) Expected population deviation rate plus acceptable risk of overreliance
• B) Tolerable deviation rate minus expected population deviation rate
• C) Population size times expected population deviation rate
• D) Acceptable risk of overreliance minus tolerable deviation rate

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Definitions:

Explicit Costs

Direct payments made to others in the course of running a business, such as wages, rent, and materials.

Total Revenues

The overall amount of money generated by a business from its sales or services before any costs or expenses are deducted.

Normal Rate

The standard or average rate at which something occurs, such as interest rates, inflation, or unemployment rates.

Accounting Profit

The net income of a business as calculated by subtracting total expenses from total revenues, according to standard accounting principles.