An accounting firm is interested in estimating the error rate in an ongoing compliance audit. The population consists of 828 claims, and the firm audits a total of 85 claims. In each of the 85 claims, a total of 215 items were reviewed to determine errors. From the audit, it was found that 1 claim had 4 out of 215 items that have errors, next, one claim had 3 errors, 4 claims had 2 errors, 22 claims had 1 error and the remaining 57 claims had no errors. Assume the claim is the primary sampling unit (cluster) and the item is the second sampling unit, get a) Total errors for 85 claims and standard errors

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
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Chapter10: Statistics
Section10.6: Summarizing Categorical Data
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An accounting firm is interested in estimating the error rate in an ongoing compliance audit. The population consists of 828 claims, and the firm audits a
total of 85 claims. In each of the 85 claims, a total of 215 items were reviewed to determine errors. From the audit, it was found that 1 claim had 4 out of
215 items that have errors, next, one claim had 3 errors, 4 claims had 2 errors, 22 claims had 1 error and the remaining 57 claims had no errors.
Assume the claim is the primary sampling unit (cluster) and the item is the second sampling unit, get
a) Total errors for 85 claims and standard errors
b) Average error per itemỹ and standard error
c) Total errors for 828 claims îunb and standard errors
Transcribed Image Text:An accounting firm is interested in estimating the error rate in an ongoing compliance audit. The population consists of 828 claims, and the firm audits a total of 85 claims. In each of the 85 claims, a total of 215 items were reviewed to determine errors. From the audit, it was found that 1 claim had 4 out of 215 items that have errors, next, one claim had 3 errors, 4 claims had 2 errors, 22 claims had 1 error and the remaining 57 claims had no errors. Assume the claim is the primary sampling unit (cluster) and the item is the second sampling unit, get a) Total errors for 85 claims and standard errors b) Average error per itemỹ and standard error c) Total errors for 828 claims îunb and standard errors
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