This might be a very simple question. I searched through the forum and did not see a similar post.
I am a logistician and I am having a tough time interpreting a DoD policy document that prescribes statistical parameters for inventory sampling.
These are the parts that we understand fairly well (we think): The document calls for 95% confidence level, +/ 2.5% margin of error. The test is binomial. Each trial (item inventoried) would either pass or fail based on reconciliation with inventory records. The policy calls for stratification, but does not mandate any specific allocation strategy, so we are using proportionate allocation. So far, so good.
Here is the part I don't seem to understand from the policy: There is a footnote below the table where the categories (strata) are enumerated that simply says "+4 percent bound applicable to each category". I have attached a screenshot of the table.
Is this calling for a calculation of a binomial proportion confidence interval? If so, how does the +4% play into this?
Thanks in advance for any responses.
I am a logistician and I am having a tough time interpreting a DoD policy document that prescribes statistical parameters for inventory sampling.
These are the parts that we understand fairly well (we think): The document calls for 95% confidence level, +/ 2.5% margin of error. The test is binomial. Each trial (item inventoried) would either pass or fail based on reconciliation with inventory records. The policy calls for stratification, but does not mandate any specific allocation strategy, so we are using proportionate allocation. So far, so good.
Here is the part I don't seem to understand from the policy: There is a footnote below the table where the categories (strata) are enumerated that simply says "+4 percent bound applicable to each category". I have attached a screenshot of the table.
Is this calling for a calculation of a binomial proportion confidence interval? If so, how does the +4% play into this?
Thanks in advance for any responses.
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