Question: The SEC requires companies to file annual reports concerning their

The SEC requires companies to file annual reports concerning their financial status. It is impossible to audit every account receivable. Suppose an auditor audits a random sample of 49 accounts receivable invoices and finds a sample average of $128 and a sample standard deviation of $53.
a. Find a 99% confidence interval for the mean size of an accounts receivable invoice. Does your answer require the sizes of the accounts receivable invoices to be normally distributed?
b. How large a sample is required for you to be 99% sure that the estimate of the mean invoice size is accurate within $5?


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  • CreatedApril 01, 2015
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