ExpertEasy1 markMultiple Choice
CPA · Question 69 · Area III: Performing Procedures
An auditor is using 'Mean-per-unit' estimation in variables sampling. The sample mean is $50. The population contains 10,000 items. The standard error of the mean is $2. What is the point estimate of the total population value?
An auditor is using 'Mean-per-unit' estimation in variables sampling. The sample mean is $50. The population contains 10,000 items. The standard error of the mean is $2. What is the point estimate of the total population value?
Answer options:
A.
$500,000.
B.
$520,000.
C.
$480,000.
D.
$20,000.
How to approach this question
Mean-per-Unit = Average * Count.
Full Answer
A.$500,000.✓ Correct
Mean-per-unit estimation projects the sample average to the total population by multiplying the sample mean by the number of items in the population.
Common mistakes
Confusing point estimate with confidence interval bounds.
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