hw5 - use“ “Do ea galleria tweed «9 w Ara auditor...

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Unformatted text preview: use“ “Do ea, galleria? tweed. .. . «9' w Ara auditor detects that a certain firm is regularly overstating the doltar amounts of in— M 41 An auditor randomly samples 20 accounts receivable from the 500 accounts of a certain ventories because of delays in recording withdrawals. The auditor wants to estimate the total overstated amount on 1000 listed items by obtaining exact (audited) inventory amounts on a random sample of 15 items and comparing these exact figures with the recorded amounts. The data for the sampled items are as shown in the following table. Estimate the total overstated amount on the 1000 types of items and place a bound on the error of estimation. (Ignore the fpc.) ‘" Item Audited Recorded Overstatemeot - number amount (dollars) amount (dollars) (difference) (dollars) 1 175 210 35 2 295 305 10 3 68 91 23 4 74 82 8 5 128 I40 12 6 241 250 9 7 362 3 84 22 8 72 80 8 9 59 82 23 10 122 E40 ' 28 11 118 124 6 12 ' g 210 a 230 20 13 240 260 20 14 £23 147 24 15 96 108 12 firm. The auditor lists the amount of each account and checks to seewnether the \_ v; "Due: 1 {74/10 112 Chapter 4 Simple Random Sampling underlying documents are in compliance with stated procedures. The data appear in the accompanying table {amounts in dollars, Y = yes, N = no). Account Amount Compliance 1 278 Y 2 192 Y 3 310 Y 4 94 N 5 86 Y 6 335 Y 7 310 N 8 290 Y 9 221 Y 10 168 Y 11 188 N 12 212 N :3 92 Y 14 56 Y 15 142 Y 16 37 Y 17‘ 186 N 18 221 Y 19 219 N 20 305 Y Estimate the total accounts receivable for the 500 accounts of the firm and place a bound on the error of estimation. Do you think that the average account receivable for the firm exceeds $251)? Why? 4.42 Refer to Exercise 4.41. From the data given on the compliance checks, estimate the pro— portion of the firm’s accounts that fail to comply with stated procedures. Place'a bound on the error of estimation. Do you think the proportion of accounts that complies with stated procedures exceeds 80%? Why? ‘ (MIA?) Review the scenario in Example 4.10 on the mercury content of the water in Maine lakes. Some experts are of the opinion that the presence of a dam increases the mercury con- tent. Is there significant evidence of this in the data provided? Explain your statistical reasoning. VV4.44 The major league baseball season cazne to an abrupt end in the middle of £994. In a poll of 600 adult Americans (Time, Aug. 22, 1994), 29% blamed the players for this stoke, 34% blamed the owuers, and the rest held various other opinions. Does evidence suggest that the true proportions who blame players and corners, respectively, are really different? ...
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