You are examining additions to property and equipment for the year using the PPS statistical method. The remaining population recorded amount is \($1,000,000,\) and you believe a tolerable error of \($25,000\) is appropriate. You have concluded that a 10 percent risk of incorrect acceptance is appropriate.

Required:

a. What sample size should you use?

b. What dollar sampling interval should you use in sample selection?

c. In determining the remaining population recorded amount, what dollar cutoff would have been a reasonable amount for identifying individually significant additions?