In order to verify the accuracy of their financial

Chapter 3, Problem 9E

(choose chapter or problem)

Get Unlimited Answers
QUESTION:

Problem 9E

In order to verify the accuracy of their financial accounts, companies use auditors on a 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 Construct a probability histogram for p(y).

c Find the probability that the auditor will detect more than one error.

Questions & Answers

QUESTION:

Problem 9E

In order to verify the accuracy of their financial accounts, companies use auditors on a 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 Construct a probability histogram for p(y).

c Find the probability that the auditor will detect more than one error.

ANSWER:

 Solution:

Step 1 of 4:

   The given data states that the company’s employees makes erroneous entries 5% of the time. Suppose that an auditor randomly checks three entries.


Add to cart


Study Tools You Might Need

Not The Solution You Need? Search for Your Answer Here:

×

Login

Login or Sign up for access to all of our study tools and educational content!

Forgot password?
Register Now

×

Register

Sign up for access to all content on our site!

Or login if you already have an account

×

Reset password

If you have an active account we’ll send you an e-mail for password recovery

Or login if you have your password back