To Calculate the Sample Size in Monetary Unit Sampling

question 10

Multiple Choice

To calculate the sample size in monetary unit sampling,

• A) the confidence factor is multiplied by the tolerable misstatement as a percentage of the population value.
• B) the confidence factor is divided by the tolerable misstatement as a percentage of the population value.
• C) the tolerable misstatement is divided by the population recorded value.
• D) the tolerable misstatement is multiplied by the population recorded value.

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Definitions:

Elasticity

A gauge of the reaction in the amount of a product desired when its price varies.

Relatively Elastic

Describes a situation where the quantity demanded of a good or service greatly changes in response to changes in its price.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price level in a given period.

Coefficient

A numerical value that multiplies a variable in an equation, serving as a measure of some property or characteristic.