L12 Notes_Part_14

# L12 Notes_Part_14 - Statistical Sampling: Difference...

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Statistical Sampling: Difference Estimation Difference Estimation Objective: estimate total error in population When: the difference between AVs and BVs does not vary over the range of book values and differences tend to net out. TM = 10000; sample size 50 average difference -2 Item AV BV Difference total # of items in population 4800 1 110 100 10 total difference adjusted (PE) -9600 2 55 50 5 + total book value 100000 3 200 210 -10 Estimated Value 90400 . . . n . . . S (AVi - BVi) * N = Projected Error i=1 Sample size ____ ____ ____ 20,134 20,234 -100 When? -100/50 = -2 AV BV

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Ratio Estimation (show graph of errors) Objective: estimate total error in population When? If the errors are expected to be proportional to the book value. Sum of Audited Values X Total Book Value Sum of the Book Values (9,000/10000)* 100000 = 90000 estimated total value Point Estimate AV BV
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## This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

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L12 Notes_Part_14 - Statistical Sampling: Difference...

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