Model-Based Stratification in Inventory Cost Estimation |
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| Authors: | James Godfrey Alan Roshwalb Roger L Wright |
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| Institution: | 1. J. M. Tull School of Accounting, University of Georgia , Athens , GA , 30602;2. Graduate School of Business Administration, University of Michigan , Ann Arbor , MI , 48109 |
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| Abstract: | This article describes a method for developing an efficiently stratified sampling design for a generalized difference estimator, using a superpopulation model. The effectiveness of model-based stratification is compared to several conventional designs, using a data base from a complete audit of an inventory of 8,069 items. In this application, model-based designs reduce the required sample size from 9% to 40%, compared to the conventional designs. |
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| Keywords: | Audit sampling Generalized difference estimator Optimal stratification PPS sampling Sampling design Superpopulation model |
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