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Author Question: A cost accountant wished to establish the average amount, , spent by executives per day on travel ... (Read 50 times)

abarnes

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on: Jun 24, 2018
A cost accountant wished to establish the average amount, , spent by executives per day on travel and lodging. Then a comparison, between the average and the amount turned in to be reimbursed, will be made and unreasonably high or low expense amounts audited. A random sample of 50 executive expense receipts is taken. The average in the sample was 208 . From a similar survey the standard deviation of the amounts is approximately  = 29 . The accountant prepares a 90-percent confidence level for . How would the auditor use these data to determine if an audit should be conducted?

Question 2

How can one reduce the width of a confidence interval for a given level of confidence?


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ms_sulzle

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Reply #1 on: Jun 24, 2018
Answer to Question 1

Any observation, which is outside this interval, should be audited.

Answer to Question 2

Take a larger sample size.


abarnes

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Reply 2 on: Jun 24, 2018
Thanks for the timely response, appreciate it

parker125

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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