When Working with the Different Variables Methods

question 76

Multiple Choice

When working with the different variables methods,

• A) difference estimation frequently results in larger sample sizes than any other method.
• B) ratio estimation is the method preferred by most auditors since it is simpler to calculate confidence intervals.
• C) the difference between the mean-per-unit estimate and the difference estimate is the definition of what is being measured.
• D) stratification can only be used with difference estimation.

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Definitions:

Incentive Value

The perceived worth or desirability of a reward that motivates behavior or encourages action towards a goal.

Low Expectation

A belief that a future event or outcome will likely be of lesser quality or significance.

Cognitive Components

Refers to the mental processes involved in perception, memory, and decision-making that contribute to an individual's ability to process information.

Galvanic Skin Response

A physiological reaction where the skin's electrical conductance changes in response to stress or anxiety.