A manager randomly selected 26 large cash transactions at a bank were made in January. The manager then carefully tracked down t details of these transactions to see that the correct procedures for reporting these large transactions were followed. This bank typicall makes 1,300 such transactions monthly. (a) Is it appropriate to use a binomial model in this situation? (b) If the chance for a procedural error is 10%, is it likely that the a finds more than 2 such transactions? For this component, argue informally, without computing the probability, from the characteristic the binomial model. (c) Find the probability in part b.
A manager randomly selected 26 large cash transactions at a bank were made in January. The manager then carefully tracked down t details of these transactions to see that the correct procedures for reporting these large transactions were followed. This bank typicall makes 1,300 such transactions monthly. (a) Is it appropriate to use a binomial model in this situation? (b) If the chance for a procedural error is 10%, is it likely that the a finds more than 2 such transactions? For this component, argue informally, without computing the probability, from the characteristic the binomial model. (c) Find the probability in part b.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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I need help with a, b and c
Transcribed Image Text:A manager randomly selected 26 large cash transactions at a bank that
were made in January. The manager then carefully tracked down the
details of these transactions to see that the correct procedures for
reporting these large transactions were followed. This bank typically
makes 1,300 such transactions monthly.
(a) Is it appropriate to use a binomial model in this situation?
(b) If the chance for a procedural error is 10%, is it likely that the auditor
finds more than 2 such transactions? For this component, argue
informally, without computing the probability, from the characteristics of
the binomial model.
(c) Find the probability in part b.
(a) Is it appropriate to use a binomial model in this situation?
Yes
O No
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