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
Related questions
Question
I need help with a, b and c
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe806c6de-9c77-40e2-a02e-3d58c6f3d9d9%2Fad00de5e-6ac7-4b89-8e74-b0f3c94cfe14%2F7nxna7_processed.png&w=3840&q=75)
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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
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 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![MATLAB: An Introduction with Applications](https://www.bartleby.com/isbn_cover_images/9781119256830/9781119256830_smallCoverImage.gif)
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
![Probability and Statistics for Engineering and th…](https://www.bartleby.com/isbn_cover_images/9781305251809/9781305251809_smallCoverImage.gif)
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
![Statistics for The Behavioral Sciences (MindTap C…](https://www.bartleby.com/isbn_cover_images/9781305504912/9781305504912_smallCoverImage.gif)
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
![MATLAB: An Introduction with Applications](https://www.bartleby.com/isbn_cover_images/9781119256830/9781119256830_smallCoverImage.gif)
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
![Probability and Statistics for Engineering and th…](https://www.bartleby.com/isbn_cover_images/9781305251809/9781305251809_smallCoverImage.gif)
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
![Statistics for The Behavioral Sciences (MindTap C…](https://www.bartleby.com/isbn_cover_images/9781305504912/9781305504912_smallCoverImage.gif)
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
![Elementary Statistics: Picturing the World (7th E…](https://www.bartleby.com/isbn_cover_images/9780134683416/9780134683416_smallCoverImage.gif)
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
![The Basic Practice of Statistics](https://www.bartleby.com/isbn_cover_images/9781319042578/9781319042578_smallCoverImage.gif)
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
![Introduction to the Practice of Statistics](https://www.bartleby.com/isbn_cover_images/9781319013387/9781319013387_smallCoverImage.gif)
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman