Sampling by accountants. Accountants use stratified samples during audits toverify a

Chapter 0, Problem 8.13

(choose chapter or problem)

Sampling by accountants. Accountants use stratified samples during audits toverify a companys records of such things as accounts receivable. The stratificationis based on the dollar amount of the item and often includes 100% sampling ofthe largest items. One company reports 5000 accounts receivable. Of these, 100are in amounts over $50,000; 500 are in amounts between $1000 and $50,000;and the remaining 4400 are in amounts under $1000. Using these groups as strata,you decide to verify all of the largest accounts and to sample 5% of the midsizeaccounts and 1% of the small accounts. How would you label the two strata fromwhich you will sample? Use software or Table B, starting at line 115, to select onlythe first 5 accounts from each of these strata.