Careful Consideration of Sample Design Must Be Made to Achieve

question 70

Essay

Careful consideration of sample design must be made to achieve efficient and effective statistical samples. This is accomplished through explicit specification of key factors and relating them through mathematical models. Consideration of the same factors in nonstatistical samples may help to produce more efficient and effective samples, even if the factors are not explicitly quantified.
REQUIRED: For each of the factors listed below, indicate its effect on sample size by inserting a D (for direct) or an I (for inverse) in the appropriate column(s).
$$\begin{array} { l l l l } \text { Factor } &\text { Effect on } \\&\text { Sample Size }\\\hline\text {1. Population size }\\\text { 2. } \text { Variation in the population } & & \\\text { 3. } \text { Tolerable misstatement } & \\\text { 4. Expected misstatement } & \\\text { 5. Risk of incorrect acceptance } & \\\text { 6. Risk of incorrect rejection } &\end{array}$$

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Definitions:

Benefits

Advantages or positive outcomes derived from specific actions, policies, or products.

Qualitative Forecasting

A method of prediction that relies on non-numeric information, such as expert opinion and market trends, to forecast future events.

Expert Opinions

Expert opinions refer to authoritative judgements or advice provided by individuals recognized for their specialized knowledge or skills within a particular field.

Zero-Based

A budgeting approach where every expense must be justified for each new period, starting from a "zero base."