Which of the Following Statements Is Correct Concerning Probability Proportional

question 906

Multiple Choice

Which of the following statements is correct concerning probability proportional to size (PPS) sampling, also known as dollar unit sampling?

• A) The sampling distribution should approximate the normal distribution.
• B) Overstated units have a lower probability of sample selection than units that are understated.
• C) The auditor controls the risk of incorrect acceptance by specifying that risk level for the sampling plan.
• D) The sampling interval is calculated by dividing the number of physical units in the population by the sample size.

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Definitions:

Federal Personal Income Tax

Federal Personal Income Tax is a tax levied by the federal government on the annual income of individuals.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, reflecting the percentage of tax paid on any additional dollar of income.

Excise Taxes

Taxes levied on specific goods or services, such as gasoline or alcohol, often imposed to discourage their use or generate revenue.

Income People

Individuals or groups categorized by the level of income they receive, often used in discussions about economic policy or social welfare.