Accountants
often use stratified random sampling during audits to verify a company’s records.
The stratification is based on the dollar amount of the item. One company reports
5000 accounts receivable. Of these, 200 are in amounts over $100,000, another
1000 are in amounts between $10,000 and $100,000, and the remaining 3800 are
in amounts less than $10,000. Using these three groups as strata, you decide
to verify all of the largest accounts, to take a 5% sample of the midsize accounts,
and a1% sample of the small accounts. Based on this sampling design, how many
accounts will be sampled?
Let's Do It! 2.7 - Accounting Practices
FEEDBACK
# of large accounts to be sampled =
# of midsize accounts to be sampled =
# of small accounts to be sampled =
How would you go about taking the sample from the small
account?