You are planning to conduct an audit of Greystone Companys financial statements As part of the audit, you will select a random sample of accounts receivable in order to estimate the proportion of Greystones accounts receivable that are at least 3 months overdue a How many accounts should you plan t...

You are planning to conduct an audit of Greystone Companys financial statements. As part of the audit,

Question:

You are planning to conduct an audit of Greystone Company’s financial statements. As part of the audit, you will select a random sample of in order to estimate the proportion of Greystone’s that are at least 3 months overdue.
a. How many accounts should you plan to sample if you want to build a 95% confidence interval estimate that has a margin of error no larger than + .025. Assume you have no previous experience with the company’s books and no time to examine a pilot sample of accounts.
b. How would the recommended sample size in part a change if your prior experience with the company suggests that the proportion of that are at least three months overdue is about .06? Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...