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Please explain how you come out with this numbers Tatum Supply Company is a medium-sized distributor of wholesale hardware Read the requirements. supplies in the
Please explain how you come out with this numbers
Tatum Supply Company is a medium-sized distributor of wholesale hardware Read the requirements. supplies in the central Ohio area. It has been a client of yours for several years (Click the icon to view the table for determining sample size for attributes and has instituted excellent internal controls for sales at your recommendation. sampling using an ARO of 5%.) (Click the icon to view the information regarding controls over shipments.) (Click the icon to view the table for determining sample size for attributes In the audit of sales, one of the major concerns is the effectiveness of the controls in ensuring that all shipments are billed. You have decided to use audit sampling in sampling using an ARO of 10%.) testing internal controls. In providing control over shipments, the client has prenumbered "warehouse removal slips" that are used for every sale. It is company policy never to remove goods from the warehouse without an authorized warehouse removal slip. After shipment, two copies of the warehouse removal slip are sent to billing for the computerized preparation of a sales invoice. One copy is stapled to the duplicate copy of a prenumbered sales invoice, and the other copy is filed numerically. In some cases, more than one warehouse removal slip is used for billing one sales invoice. The smallest warehouse removal slip number for the year is 12588 and the largest is 21587. The smallest sales invoice number is 42556 and the largest is 50361. Requirement c. Design a random selection plan for selecting the sample from the population, using systematic sampling. Use the sample size determined in part b. Use a random starting point of 12638. (Round to the nearest whole number.) 200 Using systematic sampling, the sample will be selected by beginning with 12638 and then selecting at intervals of Thus, 12638 will be the first selection, 12,838 will be selected next, followed by 13,038 , and so on. 1 Tatum Supply Company is a medium-sized distributor of wholesale hardware Read the requirements. supplies in the central Ohio area. It has been a client of yours for several years (Click the icon to view the table for determining sample size for attributes and has instituted excellent internal controls for sales at your recommendation. sampling using an ARO of 5%.) (Click the icon to view the information regarding controls over shipments.) (Click the icon to view the table for determining sample size for attributes In the audit of sales, one of the major concerns is the effectiveness of the controls in ensuring that all shipments are billed. You have decided to use audit sampling in sampling using an ARO of 10%.) testing internal controls. In providing control over shipments, the client has prenumbered "warehouse removal slips" that are used for every sale. It is company policy never to remove goods from the warehouse without an authorized warehouse removal slip. After shipment, two copies of the warehouse removal slip are sent to billing for the computerized preparation of a sales invoice. One copy is stapled to the duplicate copy of a prenumbered sales invoice, and the other copy is filed numerically. In some cases, more than one warehouse removal slip is used for billing one sales invoice. The smallest warehouse removal slip number for the year is 12588 and the largest is 21587. The smallest sales invoice number is 42556 and the largest is 50361. Requirement c. Design a random selection plan for selecting the sample from the population, using systematic sampling. Use the sample size determined in part b. Use a random starting point of 12638. (Round to the nearest whole number.) 200 Using systematic sampling, the sample will be selected by beginning with 12638 and then selecting at intervals of Thus, 12638 will be the first selection, 12,838 will be selected next, followed by 13,038 , and so on. 1Step by Step Solution
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