An Increase in the Sample Size Has the Effect of Decreasing

question 15

Multiple Choice

An increase in the sample size has the effect of decreasing the sampling error if the:

• A) actual sample deviation rate increases.
• B) actual sample deviation rate does not increase.
• C) number of deviations in the sample increases.
• D) number of deviations in the sample does not increase.

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Definitions:

Revenues

The gross increase in owner’s equity resulting from business activities entered into for the purpose of earning income.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Nonfinancial Information

Data that relates to the operational, environmental, and social aspects of a business, which cannot be easily quantified in monetary terms.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees.