Whenever a Statistical Method Is Used, a Decision Rule Determines

question 85

Multiple Choice

Whenever a statistical method is used, a decision rule determines whether the population is acceptable.The decision rule for monetary-unit sampling is 'Accept the conclusion that the book value is NOT misstated by a material amount if:

• A) the overstatement tolerable misstatement amount falls between the lower and upper misstatement bounds.'
• B) the upper misstatement bound falls between the understatement and overstatement tolerable misstatement amounts.'
• C) both the understatement and overstatement tolerable misstatement amounts fall between the upper and lower misstatement bounds.'
• D) both the lower and upper misstatement bounds falls between the understatement and overstatement tolerable misstatement amounts.'