An Auditor Is Using the Probability Proportional to Size Selection

question 49

Multiple Choice

An auditor is using the probability proportional to size selection method. Using this method, the chance of selecting a $100 account balance compared to selecting a $500 account balance is:

• A) 50 per cent.
• B) 20 per cent.
• C) less but not determinable without knowing the dollar amount of the population.
• D) greater but not determinable without knowing the dollar amount of the population.

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Definitions:

Gains From Trade

The benefits that parties obtain from engaging in voluntary trade, often resulting in an increase in overall economic efficiency and consumer welfare.

Gain From Trade

Refers to the increase in output and consumption that countries experience through specialization and exchange of goods and services.

Production Possibilities Frontier

An illustration that represents the utmost production capabilities for any two commodities, based on a combination of inputs like resources and additional elements.

Self-sufficiency

The ability of an individual, household, or nation to meet all their needs without external assistance.