Concept explainers
As an example of a situation in which several different statistics could reasonably be used to calculate a point estimate, consider a population of N invoices. Associated with each invoice is its “book value" the recorded amount of that invoice. Let T denote the total book value, a known amount. Some of these book values are erroneous. An audit will be carried out by randomly selecting n invoices and determining the audited (correct) value for each one. Suppose that the sample gives the following results (in dollars).
Invoice | |||||
1 | 2 | 3 | 4 | 5 | |
Book value | 300 | 720 | 526 | 200 | 127 |
Audited value | 300 | 520 | 526 | 200 | 157 |
Error | 0 | 200 | 0 | 0 | -30 |
Let
Propose three different statistics for estimating the total audited (i.e., correct) value—one involving just N and
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Chapter 6 Solutions
Student Solutions Manual for Devore's Probability and Statistics for Engineering and the Sciences, 9th
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw HillBig Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt