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<p>A recent  audit  by  the  Department  of  Defense  Inspector  General  (DODIG)  of  Navy inventory  control  points  found  a  high  value  of  purchase  requests  for  repairable  items  that the  auditors  labeled  as  unnecessary  or  excessive.  The  dollar  figures  reported  were  based on  the  auditors'  use  of  stratified  sampling.  This  thesis  examined  the  auditors'  use  of stratified  sampling  by  attempting  to  replicate  the  auditors'  process  of  stratifying  and sampling.  The  author  then  attempted  to  verf  the  auditors'  claimed  confidence  level  and precision  of  the  final  result.  This  study  questions  the  chosen  sample  size  and  sample stratification.  In  addition,  this  thesis  found  that  the  auditors'  actual  precision  was  not  as tight  as  stated  in  the  DODIG  audit  report.  This  was  caused  by  the  auditors'  emphasis  on the  very  high  dollar  value  strata  which  had  only  a  few  purchase  requests  rather  than  on  the stratum  with  the  largest  number  of  purchase  requests.  It  was  this  latter  stratum  which  had the  highest  projected  number  and  total  dollar  value  of  excesses.
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<br>Subjects: NA</div>
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Chase, Thomas D.</div>
Internet Archive identifier