Question: An auditor is sampling a stack of N = 10,000 invoices to decide if he should accept the work of the clerk involved. He has

An auditor is sampling a stack of N = 10,000 invoices to decide if he should accept the work of the clerk involved. He has previous evidence that the error rate has been 0.3 percent, and he is willing to accept this rate 5 percent of the time. However, he is not willing to accept the lot if the error rate is more than 1.5 percent more than 5 percent of the time. What sampling plan should the auditor use?

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