I am trying to calculate the maximum tolerable error given a sample size. I am given the standard deviation and I have been told that the mean is within 1 of the population mean. Without the actual mean, how can I calculate the maximum tolerable error?

I am using:
maximum allowable error = (z-value * standard deviation)/sq root of sample size.

This does not make sense to me.

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In statistics, we sometimes call margin of error the maximum tolerable error. When we are asked to find the confidence interval for the population mean or variance, we have to find the ...

Solution Summary

This solution provides an explanation which illustrates how to approach this type of statistics problem which is based on solving for the margin of error. This solution is about 120 words in length.

1. An auditor who uses statistical sampling for attributes in testing internal controls should reduce the planned reliance on a prescribed control when the:
a. Tolerable rate plus the allowance for sampling risk equals the sample rate of deviation
b - Sample rate of deviation plus the allowance for sampling risk equals t

6.Based on a 5% risk of assessing control risk too low, how would an auditor interpret a computed upper deviation rate of 7%?
A)The auditor is willing to live with a deviation rate of 7% before deciding not to rely on the control.
B)There is a 5% chance that the deviation rate in the population is less than 7%.
C)There is

28.An auditor established a $60,000 tolerable misstatement for an asset with an account balance of $1,000,000. The auditor selected a sample of every twentieth item from the population that represented the asset account balance and discovered overstatements of $3,700 and understatements of $200. Under these circumstances, the au

Please refer attached file for tables.
Use the following company data and the PPS Sampling Tables 1 & 2:
The recorded book value of these accounts is $3,460,000.
The company has a tolerableerror of $63,460.
The anticipated error is $13,000.
The risk of incorrect acceptance is 5%.
The acceptable number of overstatement

DQ 1
If we wish to have a 95% confidence interval, what would be the value of the confidence coefficient? [Hint: Table 4B]
DQ 2
In your own words, describe the relationship between the standard error (of the mean) and maximumerror.
The standard error is the standard deviation.
The maximumerror is the product of the s

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a. True
b. False
c. True if control risk is set a maximum
d. False because you don't know the inherent risk level
2. What is the a

1. In the manufacturing process, ball bearings must be made with radius of 0.5mm, with a maximumerror in the radius of +/- 0.016 mm. Estimate the maximumerror in the volume of the ball bearing.
Solution: The formula for the volumen of the sphere is _____.
If an error deltaR is made in measuring the radius of the sphere

1. Consider a normal population with a mean+ 25 and a standard deviation= 7.0.
A. Calculate the standard score for a value x of 24.
B. Calculate the standard score for a randomly selected sample of 45 with a sample mean = 25.
C. Explain why the standard scores of 24 are different between A and B above.
2. Assume tha