Post-Audits Create an Incentive for Managers to Make Accurate Estimates

question 117

True/False

Post-audits create an incentive for managers to make accurate estimates, since managers know that their results will be evaluated.

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Definitions:

Sample Size

The number of observations or individuals taken from a population for the purpose of statistical analysis.

Sample Proportion

The sample proportion is a statistic that estimates the proportion of elements in a sample that have a particular attribute, characteristic, or outcome.

Acceptable Error

The margin of error or deviation from a standard value that is deemed tolerable within specific contexts, such as measurements or quality control.

Confidence

A measure of the degree to which one is certain about a particular prediction or outcome.