Determining the sample size is an important step of planning a sample design. Too small a sample may diminish the utility and precision of the results, while too large a sample consumes excess time and effort …

Financial statements may be used by different stakeholders for a multitude of purposes. Owners and managers require financial statements to make important business decisions affecting its continued operations. Financial analysis is then performed on these statements, providing management with a more detailed understanding of the figures.

Consider the concept of statistical inference (i.e. extrapolation).  Following the proper design, selection and analysis of a sample, we can assume the characteristics witnessed in the sample can be reasonably estimated (i.e. inferred) for the total population … extrapolation expert