Suppose the accounts receivable are arranged randomly. What kind of sampling she should choose? (b) (i) (ii) Explain your answer in Q4(b)(i).

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Chapter10: Statistics
Section10.6: Summarizing Categorical Data
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Q4. ANSWER FOR B

Q4
Aida is an auditor in a firm. She handles the long list of accounts receivable from her
firm. She verified the amounts on 5% of these accounts and estimate the average
difference between the audited and book values.
(a)
(i)
Suppose the accounts receivable are arranged chronologically, with the
older accounts tending to have smaller values. What kind of sampling
she should choose?
(ii)
Explain your answer in Q4(a)(i).
(b)
(i)
Suppose the accounts receivable are arranged randomly. What kind of
sampling she should choose?
(ii)
Explain your answer in Q4(b)(i).
Suppose the accounts are grouped by department and then listed
chronologically within departments. The older accounts again tend to
have smaller values. What kind of sampling she should choose?
(c)
(i)
(ii)
Explain your answer in Q4(c)(i).
Transcribed Image Text:Q4 Aida is an auditor in a firm. She handles the long list of accounts receivable from her firm. She verified the amounts on 5% of these accounts and estimate the average difference between the audited and book values. (a) (i) Suppose the accounts receivable are arranged chronologically, with the older accounts tending to have smaller values. What kind of sampling she should choose? (ii) Explain your answer in Q4(a)(i). (b) (i) Suppose the accounts receivable are arranged randomly. What kind of sampling she should choose? (ii) Explain your answer in Q4(b)(i). Suppose the accounts are grouped by department and then listed chronologically within departments. The older accounts again tend to have smaller values. What kind of sampling she should choose? (c) (i) (ii) Explain your answer in Q4(c)(i).
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