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:

Normal Distribution

A chance distribution evenly balanced around the mean, revealing that instances close to the mean occur more frequently than those far from it.

Standard Deviations

A measure of the dispersion or variability within a set of data, indicating how much individual data points differ from the mean.

Mean

The average value of a set of numbers, calculated by dividing the sum of the numbers by the count of the numbers.

Normal Curve

A symmetrical bell-shaped curve representing the distribution of values, traits, or characteristics that are normally distributed.