Between quarterly audits, a company checks its accounting procedures to detect problems before they become serious. The accounting staff processes payments on about 120 orders each day. The next day a...

Between quarterly audits, a company checks its accounting procedures to detect problems before they become serious. The accounting staff processes payments on about 120 orders each day. The next day a supervisor checks 10 of the transactions to be sure they were processed properly.

(a) Propose a sampling strategy for the supervisor.

(b) How would you modify the sampling strategy if the company makes both wholesale and retail sales that require different bookkeeping procedures?