Monetary Unit Sample - Poisson
I am currently working with JASP and using the poisson
distribution and i need to fill in some parameters.
1. population size: 50.000.000
2. performance materiality: 5.000.000
3. expected error in % between 0-100%
4. Risk of material misstatement (Low/medium/High)
When i enter these numbers JASP creates a sample size,
expected errors and max errors (k=0-xx)
a. When i change the numbers in % from 0% i get K=0
sample size equals 24.
b. When i change this to 50% the max errors change
from K=4. Sample
size equals 80.
1. Could somebody explain me how the percentages in step 3/a/b relates to the max errors of k=0 with 0% expected error or k=4 with excepted error of 50%?
2. Does this % mean that i expect 50% of errors in my sample size of?