If All Other Factors Specified in a Sampling Plan Remain

question 98

Multiple Choice

If all other factors specified in a sampling plan remain constant, changing the estimated population deviation rate from 2% to 4% would cause the required sample size to:

• A) decrease.
• B) remain the same.
• C) increase.
• D) become indeterminate.

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Definitions:

Cost of Goods Sold

The immediate costs involved in making the products that a company sells, comprising both materials and labor.

Net Sales

The revenue generated from sales after deducting returns, allowances for damaged or missing goods, and discounts.

Liquidity Ratio

A financial metric used to determine a company's ability to pay off its short-term debts obligations with its liquid assets.

Maturing Obligations

Debts or other obligations that are nearing their due date for payment or completion.