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Robust Bayesian Bounds for Monetary‐Unit Sampling in Auditing
Author(s) -
Neter John,
Godfrey James
Publication year - 1985
Publication title -
journal of the royal statistical society: series c (applied statistics)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.205
H-Index - 72
eISSN - 1467-9876
pISSN - 0035-9254
DOI - 10.2307/2347368
Subject(s) - bayesian probability , sampling (signal processing) , audit , unit (ring theory) , econometrics , statistics , computer science , bayesian statistics , mathematics , accounting , economics , bayesian inference , mathematics education , filter (signal processing) , computer vision
SUMMARY Mixture distributions combining a probability mass at zero and a continuous density function for positive outcomes are frequently found in auditing. The Cox and Snell bound for evaluating the results of monetary unit sampling is a Bayesian bound utilizing prior information designed for such mixture distributions. In this paper it is shown that conservative prior parameter values for the Cox and Snell bound can be found such that this bound possesses classical confidence properties in repeated sampling from a wide variety of possible realized populations.