Use the following information to answer 31-34. In his audit…

Use the following information to answer 31-34. In his audit of Daily Company’s accounts receivable, Hayes has decided to use MUS and has established the following parameters: Risk of incorrect acceptance            5%Tolerable misstatement                    $100,000Expected misstatement                     $20,000 The company’s recorded balance for accounts receivable is $2,000,000. Assuming the sample size is 156, calculate the sampling interval.

Assume you have $50,000 and you are willing to invest. You h…

Assume you have $50,000 and you are willing to invest. You have two choices: a) A safe investment that promises to pay 8% profit after 1 year.b) A risky investment that has a 10% chance you might lose all your money and 90% chance you might receive X amount of money. 1) How much do you expect to get paid for a year in the second investment to be indifferent between two investment choices? (the two investments have the same Expected Profit)2) What is the Risk Premium in the second choices?