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Unformatted text preview: 1,975,000 Acceptable Risk of Incorrect Acceptance ARIA = 10% Average percent of error assumption overstatements 50% Average percent of error assumption understatements 150% PART a ETF Sample size for overstatements: 1975,000 *3 *.5/(60,000 (10,000*1.6)) = 67 Sample size for understatements: 1975,000 *3 *1.5/(60,000 (10,000*1.6)) = 202 Pull a sample of 202 as it satisfies both objectives Interval BV/n = 1975000/202 = 9777 Determine Sample Size with Different Error Assumptions Observations: Considering both over and understatements means that the Beta risk gets divided over two tails. The reliability factors are based on a onetailed attribute sampling distribution. To have a beta risk of 10%, one can only allow 5% risk in each tail of the distribution, thus one should look at the 5% reliability factor when calculating the sample size and error limits for the overstatement and understatement case....
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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.
 Fall '08
 MONIKACAUSHOULLI

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