Which of the Following Represents a Major Difference in the Use

question 5

Multiple Choice

Which of the following represents a major difference in the use of monetary unit sampling (MUS) and classical variables sampling?

• A)MUS is more effective in controlling the auditors' exposure to sampling risk than classical variables sampling.
• B)MUS considers both the expected misstatement and tolerable misstatement in the determination of sample size,while classical variables sampling only considers the expected misstatement.
• C)MUS defines the sampling unit as a dollar of an account balance while classical variables sampling defines the sampling unit as a component of an account balance.
• D)MUS is a nonstatistical sampling method while classical variables sampling is a statistical sampling method.

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Definitions:

SSE

Sum of Squared Errors; a measure of the discrepancy between the data and an estimation model, representing the total deviation of the response values from the fit values.

Null Hypothesis

A hypothesis in statistical inference and testing that suggests no significant difference or effect, intending for it to be challenged by the alternative hypothesis.

Multiple Regression Model

A statistical technique that models the relationship between a dependent variable and two or more independent variables.

Independent Variables

Variables in an experiment or model that are manipulated to observe their effect on dependent variables.