THE STRINGER BOUND IN CASE OF UNIFORM TAINTINGS

The Stringer bound is a widely used nonparametric 100(1 - alpha)% uppe r confidence bound for the fraction of errors in an accounting populat ion. This bound has been found in practice to be rather conservative. In the present paper, we give recursive relations for obtaining the ex act distribution of the Stringer bound in the case where the underlyin g distribution of the taintings is a uniform distribution on the inter val [0,1], or a distribution with positive mass at aero and conditiona lly uniform on (0,1]. Based on these recurrence relations, we find a c oncrete counterexample which shows that the Stringer bound is not alwa ys conservative.