A contractor has 1,515 homes in various stages of construction. From a random presample of 50 homes, you determine that the estimated population standard deviation is \(\$ 2,000\). On the basis of audit risk and other factors, you set desired precision \(\$ 250 .(0) 0\) and desired reliability at 90 percent.

Required:

a. Determine sample size, assuming sampling with replacement.

b. What would sample size be if the standard deviation was increased to \(\$ 3,000\) ?

c. Assume the auditor elects to limit sample size 10.289, in the interest of cost efficiericies, what reliabilits can be achieved if desired precision remains at \(\$ 250,000\) ?

d. What precision results if reliability is held at 90 percent and sample size is 289 ?

c. Redo a to d above assuming sampling without replacement.