1. Distinguish among difference estimation, ratio estimation, mean-per-unit estimation, and stratified mean-per-unit estimation. Give one example in which each can be used.
2. An essential step in difference estimation is the comparison of each computed con-
fidence limit with tolerable misstatement. Why is this step so important, and what
should the auditor do if one of the confidence limits is larger than the tolerable
misstatement?
