Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 98

Sample Evaluation. In the most recent local election between two candidates, you heard your local news anchor indicate that your preferred candidate had 48 percent of the vote with a margin for error (precision) of ÷ 6 percent. The news anchor also indicated a reliability of 99 percent for these results.
Required:
a. Define the terms sample estimate, precision, and reliability.
b. Based on the information given, what is the possible range of support that your preferred candidate could have when all votes are counted?
c. Provide a brief summary (one sentence) describing what you can determine from the anchor's report.
d. How do you feel about your candidate's chances of winning the election?
e. How would you feel about your candidate's chances of winning if the anchor's report was identical except that the margin for error was only ÷ 1 percent?