Which of the Following Statements Is Correct Concerning Statistical Sampling

question 22

Multiple Choice

Which of the following statements is correct concerning statistical sampling in compliance testing?

• 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:

Board of Directors

A group of individuals elected by shareholders responsible for overseeing the activities and strategic direction of a company.

Cumulative Preferred Stock

A type of preferred stock that accrues dividends if not paid out in the year they are due, ensuring investors receive dividends before common shareholders.

Dividends Payable

A liability representing the amount of dividends declared by a company's board of directors that have not yet been paid to shareholders.

Cash Dividend

A cash disbursement from a corporation to its shareholders, derived from its earnings.