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Problem -
The sampling plan below was used in a statistical audit. The columns of the table list the strata indices, strata sizes, sample sizes and a description of the strata.
1
25
> $ 40,000.00
2
250
50
15,000.00 - 40,000.00
3
450
38
5,001.00 - 14,999.00
4
800
32
1,000.00 - 5,000.00
5
2,000
30
< 1,000.00
Totals
3,525
100
The means and standard deviations of erroneously paid dollars by strata were ($10,045, $623), ($8,756, $401), ($4,265, $211), ($809, $75) and ($53, $45), respectively
1. Calculate an estimate of the average error per case in the sampling frame (population) and a 90 % confidence interval for the same.
2. Calculate an estimate of the total dollars in error in the sampling frame (population) and a 90 % confidence interval for the same.
Verified Expert
In this assignment, we were required to calculate an estimate of the average error per case in the sampling frame (population) and an estimate of the total dollars in error in the sampling frame for 90 % confidence interval for the sampling plan being used in a statistical audit containing data of strata indices, strata sizes, sample sizes and a description of the strata.
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