For monetary-unit sampling, normally the estimate of the population deviation rate is:
A) between 1% and 5%, inclusive.
B) 0%.
C) between 6% and 10%, inclusive.
D) greater than 10%.

Question

Quizplus · Accepted Answer

Monetary-unit sampling assumes that errors are evenly distributed throughout the population, which means that the population deviation rate should be close to 0% if the sample is representative. If the population deviation rate is higher than 0%, it may indicate a sampling error or a systematic issue that needs to be addressed. Therefore, choice B is the best option.

For Monetary-Unit Sampling, Normally the Estimate of the Population Deviation