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ANSWER ALL PARTS.

2. An auditor wishes to sample sick-leave records of a large firm in order to estimate the total number Ty of sick-leave days taken by employees over the past quarter. The firm has eight divisions with the following numbers of employees Division i123 45678 Ti 1200 450 2100 860 2840 1910 390 3200 The auditor selects two divisions with replacement with probability proportional to the num ber of employees (a) (4 marks). Briefly describe how a sample of two divisions could be selected with replace- ment with probability proportional to(b) (2 marks). What has to be true in order that the pps sampling used by the auditor leads to a precise estimate of the total number Ty of sick-leave days taken by employees over the past quarter? (c) (4 marks). If the two divisions selected are i - 3 and i - 6, and the total number of sick-leave days actually used by them during the past quarter were 3s = 4320 and y 4160, respectively, then estimate Ty and place a bound on the error of estimation.

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