An important statistic to consider when using a statistical sampling audit plan is the population variability. The population variability is measured by the:
A) Sample mean.
B) Standard deviation.
C) Standard error of the sample mean.
D) Estimated population total minus the actual population total.

Question

Quizplus · Accepted Answer

Population variability is a measure of how spread out the data is in the population. The most commonly used measure of variability is the standard deviation. Therefore, option B is the correct choice as it can help in estimating the variability in the population, which is an important consideration when devising a statistical sampling audit plan. The other options do not provide a measure of variability and are not useful in this scenario.

An Important Statistic to Consider When Using a Statistical Sampling