Problem 11B-3 Part b. Use Mean Per Unit Sampling instead of Probability Proportion to size. Use: Book Value of Sample = 2,826,000 Tolerable Misstatement = $200,000 Risk of incorrect rejection = 5%, risk of incorrect acceptance = 5% Estimated SD = $500 (may not be needed) You need to calculate the Standard Deviation of the sample and also extrapolate to population. What is the projected misstatement for the population? What is the adjusted allowance for sampling risk? What is the appropriate interval to use? Do we accept or reject?

Part b. Use Mean Per Unit Sampling instead of Probability Proportion to size. Use: Book Value of Sample =2,826,000 Tolerable Misstatement =$200,000 Risk of incorrect rejection =5%, risk of incorrect acceptance =5% Estimated SD =$500 (may not be needed) You need to calculate the Standard Deviation of the sample and also extrapolate to population. What is the projected misstatement for the population? What is the adjusted allowance for sampling risk? What is the appropriate interval to use? Do we accept or reject