Which of the Following Statements Is Correct Concerning Statistical Sampling

question 32

Multiple Choice

Which of the following statements is correct concerning statistical sampling for tests of controls?

• A)The population size has little or no effect on determining sample size except for very small populations.
• B)The expected population deviation rate has little or no effect on determining sample size except for very small populations.
• C)As the population size doubles, the sample size also should double.
• D)For a given tolerable deviation rate, a larger sample size should be selected as the expected population deviation rate decreases.

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Definitions:

Capital Gains

The profit realized from the sale of a capital asset, like stocks or real estate, when the sale price exceeds the purchase price.

Interest Income

Earnings received from deposit or investment accounts, such as savings accounts, bonds, or loans.

Taxable Income

Income on which tax must be paid; total income minus exemptions and deductions.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressing the percentage of income that goes to taxes.