Question

An accounting firm is interested in estimating the error rate in a compliance audit it is conducting. The population contains 828 claims, and the firm audits an SRS of 85 of those claims. In each of the 85 sampled claims, 215 fields are checked for errors. One claim has errors in 4 of the 215 fields, 1 claim has 3 errors, 4 claims have 2 errors, 22 claims have 1 error, and the remaining 57 claims have no errors.

Estimate ??? and ?a^2, and comment on the efficiency of the cluster sampling.

Answer 1