If All Other Factors Specified in an Attributes Sampling Plan

question 2

Multiple Choice

If all other factors specified in an attributes sampling plan remain constant,changing the specified tolerable rate from 8% to 6%,and changing the specified risk of assessing control risk too low from 7% to 3% would cause the required sample size to:

• A)Increase.
• B)Remain the same.
• C)Decrease.
• D)Change by 4%.

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Definitions:

Warranty of Title

A legal guarantee provided by a seller to a buyer that the seller has the right to transfer ownership and no hidden liens or encumbrances exist.

Risk of Loss

The financial risk borne by a party in the event that goods are lost, damaged, or destroyed during transportation or storage.

Sale or Return

A sales agreement allowing the buyer to return unsold goods to the seller without obligation within a specified period.

On Approval

"On approval" is a transaction condition allowing a buyer to take possession of goods before deciding to complete the purchase, subject to the goods’ return if not satisfied.