The upper limit of the probable population exception rate is the
A)upper exception rate.
B)estimated population exception rate.
C)computed upper exception rate.
D)the tolerable exception rate.

Question

Quizplus · Accepted Answer

The computed upper exception rate is the highest proportion of exceptions that can be tolerated in a population, given the sample size and the desired level of confidence. It represents the upper limit of the probable population exception rate, which means that if the observed exception rate in the sample is lower than the computed upper exception rate, we can be confident that the population exception rate is within acceptable limits. Therefore, option C is the correct answer. Option A refers to a hypothetical rate that is not based on any calculation or analysis, while option B relates to the sample exception rate rather than the population rate. Option D is a common term in auditing, but it is not specific to measuring exception rates.

The Upper Limit of the Probable Population Exception Rate Is