For Exercises 3.17 and 3.18 see page 130; for 3.19 and 3.20, see pages 131–132; for 3.21 and 3.22, see page 134; for 3.23 and 3.24, see page 136; and for 3.25, see page 138.
3.24 Sampling by accountants.
Accountants use stratified samples during audits to verify a company’s records of such things as accounts receivable. The stratification is based on the dollar amount of the item and often includes 100% sampling of the largest items. One company reports 5000 accounts receivable. Of these, 100 are 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 midsize accounts and 1% of the small accounts. How would you label the two strata from which you will sample? Use Table B, starting at line 125, to select only the first five accounts from each of these strata.