Calculate the confidence interval and confidence limits for the errors in question 6-3 using ratio estimation. Compare your answer to the one for question 5-12 where the same errors were used to determine the confidence interval and confidence limits for difference estimation.

Question 5-12:

Distinguish between the terms confidence interval and confidence limits. Describe how each is calculated. Calculate both for the error information in question 5-7.

Question 5-7:

What is meant by the point estimate of the total errors for difference estima¬ tion? Calculate the point estimate when there are the following client errors in a sample of 120 items from a population of 3,000 (understatements are in parentheses): 48.12, 56.11, 97.16, (41.14), 13.06, 191.67, (84.91), 1.56.

Question 6-3

What is meant by the point estimate of the total errors for ratio estimation? Calculate the point estimate when there are the following client errors in a sample of 120 items from a population of 3,000.

The recorded value of all 120 items in the sample was \($5,820\). The sum of the recorded value of all sample items squared is \($482,270\). The total population value was \($162,560\). Compare your answer to the one for question 5-7, where the same errors were used to determine a point estimate for difference estimation.

Transcribed Image Text:

Book value Error $ 95.02 143.50 $48.12 56.11 213.16 97.16 15.10 (41.14) 45.00 13.06 191.67 27.20 38.53 191.67 (84.91) 1.56 $769.18 $281.63