George Melkonian Wanted to Determine Whether His Auditing Class Knew

question 25

Multiple Choice

George Melkonian wanted to determine whether his auditing class knew how different factors influence sample size. He made two statements:
(i) "An increase in the expected rate of deviation of the population to be tested will decrease sample size."
(ii) "An increase in the tolerable rate of deviation will decrease sample size."
George asked his class to indicate which of the statements, if any, were false.

• A) (i)
• B) (ii)
• C) (i) and (ii) are false
• D) neither of the two statements is false

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