Indicate how each of the following conditions affect sample size in a monetary u
ID: 2513949 • Letter: I
Question
Indicate how each of the following conditions affect sample size in a monetary unit sampling application by using the letters I (increase), D (decrease), or N (no effect), assuming that all other factors are held constant.
A. An increase in the expected misstatement from $5,000 to $10,000.
?B. A decrease in the population size from $1,500,000 to $1,350,000.
?C. An increase in the tolerable misstatement from $25,000 to $35,000.
?D. An increase in the risk of incorrect rejection from 5 percent to 10 percent.
?E. A decrease in the risk of incorrect acceptance from 5 percent to 1 percent.
Explanation / Answer
A. An increase in the expected misstatement from $5,000 to $10,000. - I
?B. A decrease in the population size from $1,500,000 to $1,350,000. - D
C. An increase in the tolerable misstatement from $25,000 to $35,000. - D
?D. An increase in the risk of incorrect rejection from 5 percent to 10 percent. - N
?E. A decrease in the risk of incorrect acceptance from 5 percent to 1 percent. - I