Suppose that a group of illegal counterfeiters print 1,000 copies of fake $20 bills and introduces them into the economy. Suppose that each bill is used once per week (starting in week 1), and that each time a bill is used, it has a 1 in 5 chance of being detected as fake. If it is detected, it is removed. If not, it is used again. Suppose now that instead of using a new detection tool starting in week 3, suppose we started using it right away at the beginning
Suppose that a group of illegal counterfeiters print 1,000 copies of fake $20 bills and introduces them into the
economy. Suppose that each bill is used once per week (starting in week 1), and that each time a bill is used, it
has a 1 in 5 chance of being detected as fake. If it is detected, it is removed. If not, it is used again.
Suppose now that instead of using a new detection tool starting in week 3, suppose we started
using it right away at the beginning of week 1. If we wanted the total expected number of transactions with
the 1,000 fake bills to be at most 1,700 then what percentage would we need to detect at each transaction?
Write your final answer as a percentage, and round to 2 decimal points.
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