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In order to verify the accuracy of their financial
Chapter 3, Problem 9E(choose chapter or problem)
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.