Using Difference Estimation, an Auditor Has Taken a Sample of 200

question 35

Multiple Choice

Using difference estimation, an auditor has taken a sample of 200 from a population's 40,000 items; that population has a book value of $200,000. She found that in her sample the average audited value was $4.20, while the average book value was $5.20. What is the estimated total audited value of the population?

• A) $160,000.
• B) $161,538.
• C) $168,000.
• D) $200,000.

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Definitions:

Brainstorming

A group creativity technique designed to generate a large number of ideas for the solution of a problem.

Creativity

The ability to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others, and entertaining.

Physical Exercise

Activities that require physical effort undertaken to sustain or improve health and fitness.

Endorphins

naturally occurring chemicals in the body that interact with the brain's receptors to reduce pain perception and boost feelings of pleasure or euphoria.