9.43 Population estimates.
Refer to the previous exercise. One reason to do an audit such as this is to estimate the number of claims that would not be allowed if all claims in a population were examined by experts. We have estimates of the proportions of such claims from each stratum based on our sample. With our simple random sampling of claims from each stratum, we have unbiased estimates of the corresponding population proportion for each stratum. Therefore, if we take the sample proportions and multiply by the population sizes, we would have the estimates that we need. Here are the population sizes for the three strata:
Stratum | Claims in strata |
---|---|
Small | 3342 |
Medium | 246 |
Large | 58 |
9.43
(a) The estimates are 352 for Small, 73 for Medium, and 12 for Large.