Quiz - Basic Population Statistics

1. The population "mean" or average value is that for which half of the values are larger and half the values smaller.

True
False

2. For which of the following populations of data would population statistics NOT provide useful information?

A. A schedule of vendor invoices paid.
B. A listing of depreciation amounts by type of asset.
C. Compensation amounts paid to officers.
D. A list of vendors doing business within a particular state.

3. For a population which is normally distributed, the population average will be near the peak of the "bell curve".

True
False

4. Population "modes" can be best determined by first separating the population amounts into "quartiles.

True
False

5. The most frequently occurring value found in the population is known as the "mean".

True
False

6. Generally, if the population contains any outliers, they will clustered around the population mean.

True
False

7. population statistics would generally NOT be useful to:

A. Plan the sampling procedure to be performed.
B. Identify potentially unusual transactions as to amount.
C. Document physical inventory procedures performed
D. Classify transactions for the purpose of audit planning

8. In a normally distributed population, approximately 5% of the population will have values less than two standard deviations in excess of the mean.

True
False

9. As part of the procedure to compute population statistics, the auditor could:

A. Consider only numeric amounts
B. Exclude credit balances
C. Consider stratification to focus on a particular aspect of the population
D. All of the above

10. Generally, a review of quartile values would NOT be useful in

A. Planning a sampling approach
B. Identifying unusual amounts in the population
C. Determining the amounts most important to the audit
D. Quantifying materiality for the population
E. All of the above

Quiz form generated from MS-Excel using EZ-R Quiz

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