George Melkonian wanted to determine whether his auditing class knew how different factors influence sample size. He made two statements:
(i) "An increase in the expected rate of deviation of the population to be tested will decrease sample size."
(ii) "An increase in the tolerable rate of deviation will decrease sample size."
George asked his class to indicate which of the statements, if any, were false.
A) (i)
B) (ii)
C) (i) and (ii) are false
D) neither of the two statements is false

Question

Quizplus · Accepted Answer

An increase in the expected rate of deviation typically increases the sample size needed to detect deviations, making statement (i) false. Statement (ii) is true because an increase in the tolerable rate of deviation allows for a smaller sample size.

George Melkonian Wanted to Determine Whether His Auditing Class Knew