Using an incremental confidence factor of 1.58 (corresponding to the risk of incorrect acceptance of 10 percent),what is the incremental allowance for sampling risk?
A)$5,000.
B)$7,900.
C)$8,700.
D)$23,700.

Question

Quizplus · Accepted Answer

The incremental allowance for sampling risk is calculated by multiplying the incremental confidence factor (1.58) by the standard deviation of the sample. In this case, the calculation results in $8,700.

Using an Incremental Confidence Factor of 1