I have a problem I need to solve.
I have on average about 5,000 new documents that are created every month, and I need to determine what would be my optimal sample size so that I don't need to check all of them.
However, there is a requirement that no more than 1.25% of all document can have mistakes in them.
Meaning that in this case if I were to inspect all 5,000 documents there should not be more than 63 (1.25%*5,000=63) that had mistakes in them.
Hopefully, someone can walk me through the process of determining the optimal sample size for my problem. And how to transform the data back to the full population measures.
P.S. I am familiar with the formula for finding sample size with a finite population, but my upper limit of error rate is what I am not able to figure out.
Additional information. As part of the agreement, if the error rate is greater than 2.25% then we need to check 100% of the documents. So I guess we never want to get to the 2.25% threshold.
Sorry for not being clear in my earlier explanation.