nat a large company uses an account on system (AIS) to manage its g and financial data. One important f the AIS is to continuously audit g information, looking for errors or

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
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Suppose that a large company uses an accounting
information system (AIS) to manage its
accounting and financial data. One important
function of the AIS is to continuously audit
accounting information, looking for errors or
incomplete or improbable information. For
example, when customers submit orders online,
the AIS reviews the orders for possible mistakes.
Any questionable invoices are tagged and
included in a daily exceptions report. Recent data
collected by the company show that the likelihood
is 0.10 that an order form will be tagged. As a
member of the AIS team, you have been asked
by the management to determine the likelihood
that(1) none of the order forms are tagged in a
sample of four forms? (2) there are less than
three tagged order forms in the sample of four?
Transcribed Image Text:Suppose that a large company uses an accounting information system (AIS) to manage its accounting and financial data. One important function of the AIS is to continuously audit accounting information, looking for errors or incomplete or improbable information. For example, when customers submit orders online, the AIS reviews the orders for possible mistakes. Any questionable invoices are tagged and included in a daily exceptions report. Recent data collected by the company show that the likelihood is 0.10 that an order form will be tagged. As a member of the AIS team, you have been asked by the management to determine the likelihood that(1) none of the order forms are tagged in a sample of four forms? (2) there are less than three tagged order forms in the sample of four?
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