BUS 295 Lecture Notes - Lecture 17: Interval Estimation, Statistical Parameter, Sampling Error
Document Summary
The required sample size can be found to obtain a desired margin of error (e) with a specified level of confidence (1- ). The margin of error is also called sampling error. It is the amount added and subtracted to the point estimate to form the confidence interval. Many auditors make extensive use of probability sampling and confidence intervals. The population of company accounts is usually too much to keep up with. E. g. an auditor has a population of 1000 vouchers and wants to estimate the mean and total value of that population. A sample of 50 vouchers is taken that has a mean of . 39 and. A confidence interval estimate (reflecting sampling error) should always be included when reporting a point estimate, as well as a level of confidence and sample size and an interpretation of the interval estimate. A hypothesis is a claim, often about a population parameter, like mean.
