When making statistical inferences, the auditor must remember that
A) the true population value must always be known.
B) auditors can state the conclusions drawn from a confidence interval in different ways.
C) there can be no possibility that the sample is not sufficiently representative of the population.
D) the knowledge of sampling distributions does not help the auditors to draw statistical conclusions.

Question

Quizplus · Accepted Answer

When making statistical inferences, auditors can state the conclusions drawn from a confidence interval in different ways. This is because there are different levels of confidence that can be used to construct the interval, and different ways of interpreting the results depending on the context of the study. It is also important to remember that statistical inferences are based on probabilities and therefore there is always a chance for error, and that the sample may not perfectly represent the population.

When Making Statistical Inferences, the Auditor Must Remember That