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For an attributes sampling plan, the tolerable deviation rate is 4.5%, the computed upper

deviation rate is 7%, the sample deviation rate is 3%, and the desired confidence level is 95%.
What is the allowance for sampling risk included in the computed upper deviation rate?

A. 1.5%.
B. 3%.
C. 4%.
D. 5%.

1 Answer

2 votes

Final answer:

Without the full context of the question, the specific computed upper deviation rate cannot be concluded. Generally, to lower sampling error, increasing sample size is effective. The ±3 percent represents the range around the estimated parameter where the true value is expected to be, with a certain level of confidence.

Step-by-step explanation:

For an attributes sampling plan, the tolerable deviation rate is a predetermined threshold that the auditor is willing to accept. However, as it seems the question got cut off, and the context is missing, it's not possible to complete the sentence starting with 'computed upper'. If the context were related to the computed upper deviation rate or any other term that could give a solid reference to conclude an answer, then it could be addressed accordingly. Nonetheless, to discuss the provided concepts in general, the computed upper deviation rate is a statistic that auditors can derive from their sample to estimate the true deviation rate in the population.

Regarding lowering the sampling error, one strategy mentioned is to increase the sample size. This is because a larger sample tends to give a more accurate estimate of the population parameter, leading to a lower margin of error. The maximum error bound of ±3 percent, as given in another context, represents the range within which the true population parameter is expected to lie with a given level of confidence. In this example, if researchers are estimating a percentage, the true percentage is expected to be within 3 percent above or below the estimated percentage.


It is also important to note that, when statistical analysis is based on normal distributions and assumptions regarding standard deviations and data collection methods are made, one must also consider the significance level, like 0.05, which helps in determining the likelihood that the observed results are due to chance.

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