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) only
B) (ii) only
C) both (i) and (ii)
D) neither (i) nor (ii)

Question

Quizplus · Accepted Answer

Statement (i) is false, as an increase in the expected rate of deviation will actually increase the required sample size. Statement (ii) is true, as an increase in the tolerable rate of deviation will allow for a smaller sample size. Therefore, the correct answer is (i) only.

George Melkonian Wanted to Determine Whether His Auditing Class Knew