Sampling methods and confidence intervals are routinely used for financial audits of large companies. Which of the following is an advantage of doing it this way, versus having a complete audit of all records?
a. It is much cheaper.
b. A sample can be done more carefully than a complete audit.
c. A well-designed sampling audit may yield a more accurate estimate than a less carefully carried out complete audit or census.
d. All of the above.
Question 2
Which of the following statements is true regarding a 95 confidence interval? Assume numerous large samples are taken from the population.
a. In 95 of all samples, the sample proportion will fall within 2 standard deviations of the mean, which is the true proportion for the population.
b. In 95 of all samples, the true proportion will fall within 2 standard deviations of the sample proportion.
c. If we add and subtract 2 standard deviations to/from the sample proportion, in 95 of all cases we will have captured the true population proportion.
d. All of the above.
A chuckwalla, Sauromalus ater. Chuckwallas are large herbivorous lizards living in the southwestern
Managing large bands of grazing animals requires detailed knowledge of local landscapes, especially
Large Tortoiseshell
The Economics of Money, Banking and Financial Markets, Business School Edition