Question

In mus assume the following:

tolerable misstatement $ 37,000
projected misstatement $ 8,900
basic precision $ 27,000
incremental allowance $ 4,300

what is the most likely amount of misstatement in the population?
A. $30,000
B. $43,800
C. $9,200
D. $4,600

Answer 1

To calculate the most likely amount of misstatement in the population, you need to subtract the projected misstatement and incremental allowance from the tolerable misstatement.

Step-by-step explanation:

In order to calculate the most likely amount of misstatement in the population, we need to consider the tolerable misstatement, projected misstatement, basic precision, and incremental allowance.

The most likely amount of misstatement in the population can be calculated by subtracting the projected misstatement and incremental allowance from the tolerable misstatement:

Most likely amount of misstatement = Tolerable misstatement - (Projected misstatement + Incremental allowance)

Plugging in the given values:

Most likely amount of misstatement = $37,000 - ($8,900 + $4,300) = $23,800

Therefore, the most likely amount of misstatement in the population is $23,800. The correct answer is not provided in the options given.