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3.44 Stratified samples for accounting audits. Accountants use stratified samples during...

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Accounting

3.44 Stratified samples for accounting audits. Accountants use stratified
samples during audits to verify a company's records of such things as accounts
receivable. The stratification is based on the dollar amount of the item and often
includes 100% sampling of the largest items. One company reports 5000
accounts receivable. Of these, 100 are in amounts over $50,000;500 are in
amounts between $1000 and $50,000; and the remaining 4400 are in amounts
under $1000. Using these groups as strata, you decide to verify all of the largest
accounts and to sample 5% of the midsize accounts and 1% of the small
accounts. How would you label the two strata from which you will sample? Use Table B, starting at line 125, to select the first 6 accounts from each of these strata.
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