Question
Population: 4,000 bins (sampling units) Desired Confidence Level: 90% Tolerable misstatement: 35,000 ounces Expected misstatement: 10,000 ounces Ounces on hand: 700,000 ounces Total Recorded Weight:
Population: 4,000 bins (sampling units)
Desired Confidence Level: 90%
Tolerable misstatement: 35,000 ounces
Expected misstatement: 10,000 ounces
Ounces on hand: 700,000 ounces
Total Recorded Weight: 24,000
Total Audited Weight: 23,600
Audit Difference: 400
Squared Audit Difference: 17,856
Mean Misstatement per sampling item: 4 ounces
Projected population misstatement: 16,000 ounces
What is the confidence bound (in ounces) and the confidence interval (in ounces)?
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Corporate Finance The Core
Authors: Jonathan Berk, Peter DeMarzo
4th Global Edition
1292158336, 9781292158334
