Accession Number:

AD0422786

Title:

ON A MIXED-SEQUENTIAL ESTIMATING PROCEDURE WITH APPLICATION TO AUDIT TESTS IN ACCOUNTING,

Descriptive Note:

Corporate Author:

NORTHWESTERN UNIV EVANSTON ILL TECHNOLOGICAL INST

Report Date:

1963-08-01

Pagination or Media Count:

20.0

Abstract:

In a situation when both existing acceptance and survey sampling techniques present practial problems, it is desirable to have a sampling technique which combines the practical advantages of each. Such a technique is here in presented. In the control evaluation circumstance, the sampling objective is stated as discovering as rapidly as possible whether particular error ates are in an acceptable range and, if not, estimating with prescribed assurance what the error rates might be. There have been several procedures in the classical literature which use a special type of design for detecting various recording mistakes before estimation. Such methods have an aspect of a preliminary test of significance coupled with an estimation procedure. The new statistical model or estimating procedure here proposed involves the conbination of sequential and fixed size procedures since they are, respectively, most efficient for determining acceptability and confidence intervals. The resulting mixed procedure, in contrast to others in the literature, begins with the sequential part since most of the time acceptance is to be anticipated and continues to an priori fixed total in the event of nonacceptance. Hence the procedure yields one of two final conclusions, either to accept the prescribed hypothesis with a specified risk or error, or a confidence interval estimate of the unknown error rate. Author

Subject Categories:

Distribution Statement:

APPROVED FOR PUBLIC RELEASE