When Drawing Statistical Inferences About the Population When Using Variables

question 27

Multiple Choice

When drawing statistical inferences about the population when using variables sampling,

• A)a confidence interval cannot be calculated.
• B)there is always a possibility that the sample is not sufficiently representative of the population to provide a sample mean or standard deviation reasonably close to those of the population.
• C)the auditor does not know the reliability fo the statistical inference process that is used to draw the conclusions.
• D)all of the above are correct.

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the business for its operations instead of allocating them to their best alternative use.

Interest Rate

The expense associated with taking out a loan or the earnings from investments, usually shown as a percent of the total amount invested or borrowed.

Specialization

The process of focusing effort and resources on a limited number of activities to gain efficiency or expertise.

Average Cost

The total cost of production divided by the total quantity produced, representing the cost per unit of output.