A cost accountant wished to establish the average amount, , spent ...

[abarnes]

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?

[ms_sulzle]

Answer to Question 1

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

Answer to Question 2

Take a larger sample size.

[abarnes]

Excellent

[frankwu0507]

Great answer, keep it coming