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An auditor detects that a firm is regularly overstating the amounts of inventories because of delays in recording withdrawals. He takes a random sample of 20 inventories and finds that they are overstated by the following amounts (in pounds sterling) 10 12 9 28 6 20 26 24 12 22 5 14 11 23 9 21 29 13 16 24   (d)  Calculate the sample mean and the sample median, and compare these two values. Which of these two values is more ‘informative’? (e)  Calculate the range and the interquartile range of the data. (f)  Calculate the sample variance, the sample standard deviation and the coefficient of variation.

- November 14, 2022 - Edwin Tunner

An auditor detects that a firm is regularly overstating the amounts of inventories because of delays in recording withdrawals. He takes a random sample of 20 inventories and finds that they are overstated by the following amounts (in pounds sterling)

10 12 9 28 6 20 26 24 12 22 5 14 11 23 9 21 29 13 16 24

 

  1. (d)  Calculate the sample mean and the sample median, and compare these two values. Which of these two values is more ‘informative’?

  2. (e)  Calculate the range and the interquartile range of the data.

  3. (f)  Calculate the sample variance, the sample standard deviation and the coefficient of variation.

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