An extended multinomial-Dirichlet model for error bounds for dollar-unit sampling.

This paper describes an extension of the Tsui, Matsumura, and Tsui (1985) procedure, which is based on a multinomial distribution model within the dollar-unit sampling framework, with a Dirichlet prior distribution. The extended model and a different Dirichlet prior are used in this study to generate upper and lower bounds and two-sided confidence intervals for situations in which both understatement and overstatement errors are possible. The reported simulation study indicates that the achieved confidence levels of the proposed estimates are usually close to or greater than the nominal levels in repeated sampling for the populations studied. [ABSTRACT FROM AUTHOR]