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Significant digits for audits based on sampling

  • 1.  Significant digits for audits based on sampling

    Posted 01-28-2015 11:27
    I had a client who regularly reported confidence intervals like $234,567.89 + or - $56,789.01.  I could not get any rounding done despite repeated suggestions.  The client wanted its users to be able to fully re-create the calculations, since they were the basis of a bill for payment at the midpoint.  The absurdity of asking for pennies usually disappeared during negotiations to avoid court trials; settled amounts often had just one or two significant digits.

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    Robert Lovell
    Retired
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