In order to verify the accuracy of financial accounts, companies use external auditors on regular basis to verify accounting entries. The company's employees make erroneous entries 5% of the time. Suppose that an auditor randomly checks three entries, (a) Find the probability distribution for Y, the number of errors detected by the auditor. (b) (c) What is the probability that less than two errors will be detected? The company should resubmit their entry if it contains at least one error. If auditor checked 100 entries, how many entries is expected to be the resubmitted?
In order to verify the accuracy of financial accounts, companies use external auditors on regular basis to verify accounting entries. The company's employees make erroneous entries 5% of the time. Suppose that an auditor randomly checks three entries, (a) Find the probability distribution for Y, the number of errors detected by the auditor. (b) (c) What is the probability that less than two errors will be detected? The company should resubmit their entry if it contains at least one error. If auditor checked 100 entries, how many entries is expected to be the resubmitted?
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 11ECP: A manufacturer has determined that a machine averages one faulty unit for every 500 it produces....
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, probability and related others by exploring similar questions and additional content below.Recommended textbooks for you