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If the audit team examines a sample of 100 items, finds six deviations, and calculates a ULRD of10.3 percent, what is the allowance for sampling risk?

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter2: Descriptive Statistics

Section: Chapter Questions

Problem 14P: Consider a sample with data values of 27, 25, 20, 15, 30, 34, 28, and 25. Compute the 20th, 25th,...

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If the audit team examines a sample of 100 items, finds six deviations, and calculates a ULRD of
10.3 percent, what is the allowance for sampling risk?

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