From: Rick
Date: 10/21/2005
Time: 11:50:25 AM
I'm developing a sampling plan for a mortgage lender. Historically, audits indicate 4% of loan documents contain errors. Audits are conducted at the branch level, but the existing attribute sampling plan (10% of all production), is burdensome and expensive. If I use margin-of-error sampling at a 95% confidence level, sample sizes are significantly increased compared to the existing plan. Branch production ranges from 2 to 120 loans per month, with the average being 52 loans. Can you recommend any sampling options that would be statistically valid, but allow smaller sample sizes? Could acceptance sampling be an option, as the statistics are the same as margin-of-error sampling?
Thank you,
Rick