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?

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Question

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,
3.
(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?

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