I the Higher the Degree of Confidence, the Larger the Sample

question 66

Multiple Choice

i. The higher the degree of confidence, the larger the sample required to give a certain precision.
ii. To determine the size of a sample, the standard deviation of the population must be estimated by
Either taking a pilot survey or by approximating it based on knowledge of the population.
iii. One factor in determining the size of a sample is the maximum allowable error that you must
Decide on. It is the maximum error you will tolerate at a specified level of confidence.

• A) (i), (ii), and (iii) are all correct statements.
• B) (iii) is a correct statement but not (i) or (ii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Current-Year Net Income

Current-Year Net Income is the total profit or earnings of a company for the ongoing fiscal year, after subtracting all expenses, taxes, and costs.

Accrued Salaries

Wages that have been earned by employees but have not yet been paid by the employer.

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Unadjusted Trial Balance

A listing of all the accounts in the general ledger with their balances before any adjusting entries are made.