Question: This problem requires the use of ACL software which is 145029

This problem requires the use of ACL software, which is included in the CD attached to the text. Information about installing and using ACL and solving this problem can be found in Appendix, pages 838-842. You should read all of the reference material, especially the material on sampling, to answer questions a-e. For this problem use the "Inventory" file in the "Inventory-Review" subfolder under tables in Sample-Project.
Suggested commands, where applicable, are indicate at the end of the problem requirements.

a. Calculate the sample size and sampling interval for an MUS sample based on inventory value at cost (Value). Use a confidence level of 90%, materiality of $40,000, and expected errors of $2,500. (Sampling/Calculate Sample Size; select "monetary" radio button)
b. What is the sampling size and sampling interval if you increase materiality to $50,000 and decrease expected errors to $1,000?
c. Select the sample based on the sampling interval determined in part a. (Sampling /Sample Records; select "Sample type" as MUS. For "Sample Parameters" select fixed interval and enter the interval from part a.; use a random start of 3179.)
d. How many items were selected for testing? Why is this number less than the sample size determined in part a?
e. What is the largest item selected for testing? How many sample items are larger than the sampling interval? How many items are larger than the sampling interval in the population?

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