When Using Systematic Selection Procedures with Monetary-Unit Sampling of Accounts

question 57

Multiple Choice

When using systematic selection procedures with monetary-unit sampling of accounts receivable, the interval is determined by:

• A) dividing the sample size by the account with the largest dollar value.
• B) consulting a random number table.
• C) dividing the population size by the account receivable with the largest dollar value.
• D) dividing the population size by the desired sample size.

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Definitions:

68-95-99.7 Rule

A statistical rule stating that for a normal distribution, approximately 68% of data values fall within one standard deviation of the mean, 95% within two standard deviations, and 99.7% within three standard deviations.

Natural Tolerances

The inherent variability found within a natural process or system's parameters.

Normal Distribution

It is characterized by a symmetric shape around the mean, where data samples are more densely populated close to the mean and less so the farther they are from it.

Inside Diameter

The measure of the distance across the innermost part of a hollow object or space.