Answered: An auditor detects that a certain firm…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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An auditor detects that a certain firm is regularly overstating the dollar amounts of inventories because of delays in recording withdrawals. The auditor wants to estimate the total overstated amount on 1000 listed items by obtaining exact (audited) inventory amounts on a random sample of 15 items and comparing these exact figures with the recorded amounts. The data for the sampled items are available in electronic Section 4.0 (all data in dollars). Estimate the total overstated amount on the 1000 types of items and place a bound on the error of estimation. (Ignore the fpc.)

Item number	Audited amount	Recovered Amount	Overstatement (Difference)
1	175	210	35
2	295	305	10
3	68	91	23
4	74	82	8
5	128	140	12
6	241	250	9
7	362	384	22
8	72	80	8
9	59	82	23
10	112	140	28
11	118	124	6
12	210	230	20
13	240	260	20
14	123	247	24
15	96	108	12

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