The Internal Auditing Staff of a Local Manufacturing Company Performs

question 36

Multiple Choice

The internal auditing staff of a local manufacturing company performs a sample audit each quarter to estimate the proportion of accounts that are more than 90 days overdue (delinquent) . The historical records of the company show that over the past 8 years, the average has been that 14 percent of the accounts have been delinquent. For this quarter, the auditing staff randomly selected 250 customer accounts. What are the mean and the standard deviation of the sampling distribution of ?

• A) 14 and 250
• B) .14 and .1204
• C) 35 and 5.486
• D) .14 and .0219
• E) 35 and 30.1

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Definitions:

Scarcity Principle

A psychological principle suggesting that people find items and opportunities more valuable when they are perceived as scarce or limited.

Disrupt-then-reframe Technique

A sales technique that initially creates confusion or disruption in the consumer's mind, then offers a simple, positive reframe to encourage purchase.

Breaking up Attention

The act of dividing one's focus between multiple tasks or stimuli, which can reduce the effectiveness of cognitive processing.

Persuasion

An attempt to change a person’s attitude.